Government officials in hot water, and Ramaphosa sets the date for South Africa’s big day
The South African rand strengthened on Thursday as markets assessed a batch of monthly domestic data for clues to the health of the country’s economy.
The rand pulled back to around R16.70 on Thursday after weakening to over R16.80 following the US Fed’s rate announcement earlier in the week.
The strengthening can also be partially attributed to the dollar sliding after Japanese officials signalled possible intervention to support the yen, and ongoing pressure on oil prices.
Oil prices jumped briefly above $126 a barrel on fears the US-Iran war could worsen and further disrupt Middle East supplies, before retreating.
The commodity moved back towards $110 a barrel, but prices remain elevated. South Africa is a net importer of energy, leaving it highly exposed to swings in global oil prices.
South Africa also published its producer price inflation (PPI), which quickened to 2.3% year on year in March, data from Stats SA showed on Thursday.
Other economic data released included the country recording a trade surplus of R31.87 billion in March, while National Treasury data showed a budget deficit of R45.61 billion for the month.
On Friday morning, a public holiday in the country, the rand was trading at R16.68 to the dollar, R22.69 to the pound, and R19.56 to the euro.
Gold is trading lower at $4,611.86 an ounce, while oil prices were at $110.93 a barrel.
5 important things happening in South Africa today
Election date set: President Cyril Ramaphosa has set the official date for the 2026 Local Government Elections as 4 November 2026. Political parties have welcomed the date, framing the vote as a critical moment. South Africans may also get a public holiday out of it. [BusinessTech]
Heads roll over AI: The Department of Communications and Digital Technologies, as well as the Department of Home Affairs, have suspended officials over the use of AI in government policy, where sources were fabricated and hallucinated by the models. [MyBroadband]
Brink of collapse: The Solidarity Teachers’ Network has warned that Gauteng’s education system could collapse if serious issues are not addressed. It cited Gauteng’s MEC for Education, Lebogang Maile, who said that 48% of the province’s schools and 64% of its secondary schools are overcrowded. There is a shortfall of more than 80,000 places for secondary school learners. [Daily Investor]
Money down the drain: The SIU has flagged close to R150 million in irregular spending in South Africa’s capital, Tshwane, with city officials flagged for corruption risk investigations, as well as many being referred to the National Prosecuting Authority. [BusinessLive]
Rotten textbook tender: Parliament has lashed out over a R1.6 billion textbook tender that was awarded to an alleged shell company with no history in publishing. Parliament is calling for the whole process to be overhauled and redone. [IOL]
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