US sends a threat to South Africa, and bad start for people with DStv in South Africa
The rand remained relatively stable on Thursday as investors analysed November’s producer inflation data for insights into the health of Africa’s largest economy.
The rand was trading at 16.7675 against the dollar, compared to the previous close of 16.7750.
According to the statistics agency, producer inflation rose by 2.9% year-over-year in November, remaining unchanged from October.
Additionally, producer prices were flat on a monthly basis. Analysts believe that the increase in producer inflation is likely to continue in the coming months.
This anticipated rise will primarily be influenced by base effects, with prices expected to gradually increase from the low levels established towards the end of 2024 and into 2025.
Food and fuel prices are expected to exert significant upward pressure on inflation. Inflation has been kept in check this year, allowing the South African Reserve Bank to reduce its main interest rate four times.
In its last policy meeting, the central bank lowered rates by 25 basis points, citing an improved inflation outlook.
The next policy announcement is scheduled for January 29, and analysts predict further rate cuts in 2026.
On the Johannesburg Stock Exchange, the Top 40 index was last down 0.02%.
On Friday, 19 December, the rand was trading at R16.75 to the dollar, R22.40 to the pound and R19.63 to the euro. Oil was trading slightly lower at $59.73 a barrel.
5 important things happening in South Africa today
US threatens South Africa: The US has accused South Africa of intimidating and detaining US officials following the deportation of Kenyan nationals found working at a refugee processing centre for the Americans. The US noted it will not tolerate such behaviour toward its government’s officials, and said failure by South Africa to hold to account those responsible will result in “severe consequences”. However, Home Affairs Minister Leon Schreiber said no US officials were arrested in the process, the law enforcement operation was not conducted at a diplomatic site, and no members of the public were harassed. [TimesLive]
Bad start for people with DStv: MultiChoice faces challenges as DStv customers in South Africa will start 2026 with fewer channels at the same prices. Ironically, Canal+ promised more content and better services upon the buyout. However, subscribers may end up paying more for less content next year.
[MyBroadband]
Durban municipality under fire: The KwaZulu-Natal High Court has issued a scathing judgment against the eThekwini Municipality, accusing the city of endangering public health by reopening beaches with dangerously high E. coli levels without provincial approval. [EWN]
Major company to delist from JSE: Renergen, a helium and natural gas producer, will be delisted from the JSE on January 12, following regulatory approval of its takeover by US-based ASP Isotopes. The compliance certificate from the takeover regulation panel allows the scheme of arrangement to proceed. Renergen’s shares will also be removed from the A2X and the Australian Securities Exchange. [Business Day]
Collapse of South Africa’s navy: Bringing South Africa’s naval frigates and submarines back into operation could cost the Department of Defence up to R8.5 billion. However, with only 0.7% of the GDP allocated to the defence budget, the Navy is unlikely to receive the necessary funding anytime soon. [Newsday]
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