Principal of top-performing private school resigns, and scheduled water cuts on the cards for South Africa
The rand strengthened slightly on Thursday as investors anticipated President Cyril Ramaphosa’s annual State of the Nation address for insights into the country’s economic and political future.
The rand was trading at 15.8375 against the dollar, reflecting an increase of approximately 0.2% from the previous day’s close.
Ramaphosa delivered his second State of the Nation address since the formation of his coalition government in June 2024 last night.
Analysts noted that despite several achievements, such as improvements in fiscal health, a credit rating upgrade, and a successful shift towards a lower inflation target, the escalating water crisis remains a pressing issue.
Certain areas of Johannesburg have experienced water shortages for over three weeks, while experts are warning of a potential drought in the Western Cape.
South Africa’s statistics agency released mining data indicating that December’s mining output increased by 2.5% year-on-year, compared to a revised decline of 2.4% in November.
The agency also reported manufacturing figures, showing a year-on-year decrease in manufacturing output of 1.4% in December, following a revised 2.0% drop in November.
Investec economist Lara Hodes stated in a research note, “The results align with the movement in the seasonally adjusted headline Purchasing Managers’ index, which fell further into contraction territory at the end of last year.
Domestically, the industry continues to face several challenges that are impacting production costs and overall activity.” On the Johannesburg Stock Exchange, the Top-40 index was up by 0.5%.
As of Friday, 13 February, the rand is trading at R15.98 to the dollar, R21.75 to the pound, and R18.96 to the euro. Gold is currently valued at $4,967.44 per ounce, while oil prices have dropped to $67.38 per barrel.
5 important things happening in South Africa today
Private school principal resigns: The head of Roedean, a private girls’ school, has stepped down following a controversy surrounding the cancellation of a tennis match with King David school. This decision was made after some parents expressed concerns about their daughters competing against a Jewish school. [Mail&Guardian]
Scheduled water cuts on the cards: Deputy Minister of Water and Sanitation David Mahlobo announced that Gauteng water authorities will begin “load-shifting” to prevent a complete failure of the province’s water systems. This was part of several “soft” water restrictions shared at a media briefing with Premier Panyaza Lesufi in Johannesburg. [MyBroadband]
Sanlam acquires Medhold Group: Sanlam Private Equity has acquired a majority stake in Medhold Group, a leading distributor of medical devices in Southern Africa, as its first investment through Mid-Market Fund II. This deal aims to enhance access to medical technologies and improve hospital infrastructure in the region. [Moneyweb]
New social grant: In his 2026 State of the Nation Address, President Cyril Ramaphosa reiterated his commitment to a new income support grant. He highlighted the success of the Social Relief of Distress (SRD) grant, which has supported millions. The grant will be extended indefinitely and redesigned in 2026 to include employment-seeking criteria. [BusinessTech]
Ramaphosa deploys the army: President Cyril Ramaphosa has sent a strong warning to mafia-style organised crime groups, stating that their control over parts of South Africa’s economy and communities will no longer be accepted. A World Bank report last year estimated that crime costs South Africa about 9.6% of its GDP, including direct losses, security expenditures, and opportunity costs. [BusinessTech]
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