New laws coming about property rights in South Africa, and important bridge collapses
The rand and government bonds began the week on a negative note, as market participants awaited the release of domestic inflation data.
This was compounded by reports of renewed closures in the Strait of Hormuz, which led to a rise in oil prices and dampened appetite for risk assets.
As a result, the rand traded at 16.3325 against the dollar, down 0.2% from its previous close.
Statistics South Africa is scheduled to release March inflation data on Wednesday, with analysts anticipating a slight increase to 3.1% year-on-year, up from 3.0% in February.
Economists predict that the modest rise in inflation will primarily result from higher fuel prices, while food inflation is expected to ease.
As a net fuel importer, South Africa is particularly vulnerable to fluctuations in global energy prices.
Since the onset of the conflict involving the US and Israel at the end of February, followed by Iran’s retaliatory actions throughout the Gulf, the rand has been influenced by global market sentiment.
Analysts suggest that a significant increase in South African inflation is more likely to be reflected in April’s Consumer Price Index (CPI) figures, indicating that March’s data will probably have little impact on the rand’s performance.
Additionally, the South African Reserve Bank will release a Monetary Policy Review document on Tuesday, which may provide insights into its interest rate decisions for the year ahead.
As of Tuesday, 21 April, the rand is trading at R16.35 to the dollar, R22.10 to the pound, and R19.26 to the euro. Gold is currently valued at $4,788.05 per ounce, while oil prices have risen to $94.15 per barrel.
5 important things happening in South Africa today
New laws coming about property rights: The government wants to amend the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act to strengthen property rights against land and property grabs. [BusinessDay]
Important bridge collapses: Visitors to Kruger National Park are warned of access disruptions due to a bridge washout on the R531 near the Wits Rural Facility. This has made Parks Orpen Gate inaccessable, which is a notable concern for tourism organisations in the area. [ENCA]
Apple CEO steps down: Tim Cook will transition leadership of hardware to hardware chief John Ternus later this year, concluding a 15-year tenure that transformed Apple into a $4 trillion company across sectors including watches, streaming, and financial services. [MyBroadband]
City Power’s new solar process called out: Outa called out City Power’s new six-step process, stating that it adds avoidable costs, delays, and administrative burdens due to required approvals and inspections before and after installation. [TimesLive]
Sanral in hot water: The South African National Roads Agency (Sanral) has been criticised by a high court for delays and non-compliance, leading to a punitive costs order. [Moneyweb]
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