Eskom workers reject 7% wage increase, and the South African Rugby Union is technically insolvent
The South African rand has been weaker as investors await South Africa’s inflation data and the next interest rate decision this coming week.
The rand traded at 16.57 against the dollar on Friday, roughly down 1% from its previous close.
The currency has remained under pressure for most of the week as tensions in the Middle East weighed on risk sentiment, pushing it to its weakest level this month.
Traders are now focused on June consumer inflation data due on Wednesday for fresh clues on the South African Reserve Bank’s (SARB) plans on interest rates.
Headline inflation rose less than expected to 4.5% year on year in May, from 4.0% in April. Analysts had forecast 4.7% for the May figure.
Johann Els, chief economist at PSG Financial Services, expects inflation to edge up to 4.7% in June and for the SARB to leave its main lending rate unchanged at next week’s meeting.
However, Els said the renewed conflict in the Middle East and the resulting rise in oil prices had complicated the policy outlook, keeping a 25-basis-point increase on the table.
The central bank raised its main lending rate for the first time in three years at its previous meeting.
On the Johannesburg Stock Exchange, the Top-40 index was down 1.2%. The yield on South Africa’s benchmark 2035 government bond dropped by 9 basis points to 8.54%.
On Saturday, 18 July 2026, the rand was trading at R16.48 to the dollar, R22.17 to the pound, and R18.85 to the euro. Gold is trading at $4,018.44 an ounce, while oil prices were at $88.10 a barrel. [Reuters]
5 important things happening today
Eskom wage debate: Eskom and the National Union of Metalworkers of South Africa (NUMSA) are heading to the CCMA over the latest wage hike. NUMSA rejected Eskom’s annual salary offer of 7% over the next three years, arguing that Eskom had budgeted for a 9% increase. [MyBroadband]
South African rugby is technically insolvent: While the Springboks continue to dominate the world rugby stage, SARU remains technically insolvent. By the end of 2025, SARU’s liabilities had exceeded its assets by R84 million at a group level and R113 million at a union level. It also reported a R32.3 million loss in 2025. Former Sun International CEO David Coutts-Trotter said that SARU has now tried to align its ticket prices with international standards but failed to understand the differences in wealth among other rugby nations. [Daily Investor]
Two-year DNA backlog: The South African Police Service is facing a serious backlog of DNA evidence processed by the Forensic Science Laboratory (FSL). A whistleblower has alleged that the FSL’s backlog exceeded 50,000 crime scene samples and 250,000 reference indexes, creating long delays for an essential part of crime fighting. [Newsday]
Gun license issue: Many gun owners in South Africa are not renewing their licences, which poses a massive risk to public safety. Gun Free South Africa noted that applications have dropped 74% since 2021 and 2022, meaning that a growing number of gun owners are in possession of illegally owned firearms. [BusinessTech]
Top cop arrested again: Suspended Ekurhuleni Metropolitan Police Department (EMPD) Deputy Chief Julius Mkhwanazi has been arrested in connection with an alleged R14.9 million precious stones heist in Killarney in 2023. He already has two pending cases in separate courts [eNCA]
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