United States tables new investigation targeting South Africans, and say goodbye to TV licences
The rand weakened against a stronger dollar on Thursday as global markets awaited the outcome of a meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing.
At the beginning of a two-day summit, Xi informed Trump that progress was being made in trade talks. However, he cautioned that disagreements over Taiwan could jeopardise relations and potentially lead to conflict.
The rand was trading at 16.4499 against the dollar, down approximately 0.3% from its previous close. Like other risk-sensitive currencies, the rand often responds to global economic factors as well as domestic economic data.
Statistics South Africa reported that South Africa’s mining output increased by 2.5% year-on-year in March, a decline from the 9.7% rise in February. This growth was below the 4.1% predicted by analysts surveyed by Reuters.
Investec economist Lara Hodes noted in a research report that rising mining input costs had begun to exert upward pressure due to the conflict in the Middle East.
She warned that depending on the duration and severity of the war, miners’ profitability could continue to be affected, especially as they face local challenges such as deteriorating water infrastructure and policy uncertainty.
On the Johannesburg Stock Exchange, the Top-40 index was down 0.3%. In the bond market, South Africa’s benchmark 2035 government bond strengthened, with its yield decreasing by 5 basis points to 8.665%.
On Friday, 15 May, the rand was trading at R16.56 to the dollar, R22.14 to the pound, and R19.30 to the euro. Gold is trading lower at $4,613.61 an ounce, while oil prices were at $107 a barrel.
5 important things happening in South Africa today
New United States bill that targets South Africans: A new bill introduced to the House of Representatives in the United States authorises the President and the Secretary of State to identify and impose rigorous economic and travel sanctions against those recruiting people from Africa to fight in the war in Ukraine. The bill specifically mentions former South African President Jacob Zuma’s daughter, Duduzile Zuma-Sambudla, as a target. [Daily Investor]
Say goodbye to TV licences: The Minister of Communications and Digital Technology, Solly Malatsi, allocated R234 million to SABC. Malatsi also announced that the funding model study for the SABC had been completed. Malatsi’s department commissioned it to find an alternative to TV Licences. [MyBroadband]
More toll gates for South Africa: Transport Minister Barbara Creecy has suggested that long-term road maintenance costs may be funded through more widespread tolling. [TopAuto]
Ramaphosa doubles down on BEE: President Cyril Ramaphosa stated that critics of Black Economic Empowerment (BEE) should be ashamed, emphasising that BEE policies are enabling greater participation of black people in all sectors of the economy. [EWN]
South African municipalities are failing: Municipal financial management remains poor, with wasteful expenditure rising to R268.13 billion. Non-compliance with supply chain regulations continues, as many municipalities neglect to update or create policies. [Business Day]
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