Google to pay Elon Musk R15 billion every month, and top South African retailer closing 400 stores
The rand weakened last week as domestic markets absorbed a decline in foreign reserves from the previous month, while ongoing US-Iran peace talks kept sentiment cautious and heightened concerns about inflation.
The rand traded at 16.40 against the dollar, approximately 0.5% lower than its previous close. Data from the central bank revealed that South Africa’s international liquidity fell to $73.47 billion at the end of May, down from $73.76 billion in April.
The US dollar gained value against a basket of currencies, and oil prices stabilised after Oman announced that operations at its Mina al Fahal port were proceeding normally, despite earlier reports of disruptions following an explosion.
As a net fuel importer, South Africa remains vulnerable to fluctuations in global energy prices.
This week, investors focused on domestic markets will be looking for insights into the health of Africa’s largest economy when the statistics agency releases gross domestic product figures on Tuesday.
Additional data on current accounts, mining, and manufacturing will be published on Thursday. On the Johannesburg Stock Exchange, the Top-40 index decreased by 0.6%.
In the bond market, South Africa’s benchmark 2035 government bond weakened, with the yield rising 13 basis points to 8.68%.
On Monday, 8 June 2026, the rand was trading at R16.56 to the dollar, R22.10 to the pound, and R19.10 to the euro. Gold is trading lower at $4,311.21 an ounce, while oil prices were at $97.08 a barrel.
5 important things happening
Google to pay Elon Musk over R15 billion: Alphabet Inc.’s Google has agreed to pay Elon Musk’s SpaceX $920 million (approx. R15.2 billion) a month for computing power as part of a cloud services deal that runs through mid-2029. [MyBroadband]
TFG to close 400 stores: South African fashion retailer TFG announced it will cut costs, slow store expansion, reduce capital expenditure, and close over underperforming stores after a 33.5% drop in full-year profit. CEO Anthony Thunstrom noted that the company has identified about 300 underperforming or loss-making stores and plans to close more than 100 over the year ahead. [Newsday]
Ramaphosa is cracking down on illegal immigration: President Cyril Ramaphosa proposed measures to combat illegal immigration, including relocating refugee centres and fast-tracking deportations. He warned that unchecked migration threatens South Africa’s security and economy. These comments follow anti-immigration protests, with demands for undocumented migrants to leave by 30 June. [Business Day]
Bad news for anyone who paid their e-toll debt: The Minister of Transport, Barbara Creecy, and the Deputy Minister, Mkhuleko Hlengwa, announced that the government has written off the e-toll debt of Gauteng motorists, two years after its gantries were turned off. [BusinessTech]
ANC is in trouble: The ANC’s position as the dominant political force in South Africa is coming to an end, as voters lose faith in the party’s ability to protect or advance their interests. This decline is not due to ideological shifts within the voter base, but is motivated by people’s economic circumstances and interests. [Daily Investor]
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