Business

5 things you need to know in South Africa today

Staff Writer

 ·10 Aug 2016

Here’s what is happening in and affecting South Africa today:

• The Democratic Alliance says that coalition talks in the country’s major metros are still ongoing, and no final decisions have yet been reached. The party has said it would not purge jobs, and that anyone who was skilled and qualified would be selected to help govern. DA leader Mmusi Maimane said the ANC was not an option, as the party played politics based on race.

• Telecoms Minister Siyabonga Cwele has made good on his promises and is taking legal action to prevent Icasa from auctioning off R12 billion worth of much-needed spectrum to bidding companies. The High Court application will delay the already delayed rollout, which government has been promising for the better part of a decade.

• South Africa’s rand stretched gains on Monday, still riding the wave of last week’s peaceful local government elections and further signs of a delay to interest rate hikes in the United States. Following the public holiday on Tuesday, the rand was stable at R13.37 to the dollar, R17.48 to the pound and R14.91 to the euro.

• In global news: Asian shares hit a one-year high on Wednesday while the dollar and Treasury yields slid on weak U.S. productivity data and sterling recovered from a one-month low. Wall Street eked out gains on Tuesday following a strong session for European stock markets.

• Oil prices dipped on Wednesday as a global supply overhang weighed on markets, while talk of a potential producer meeting to discuss propping up prices lent some support but was met with scepticism by analysts. U.S. crude oil futures were trading at $42.69 per barrel, down 9 cents while Brent crude futures were at $44.93 per barrel, down 5 cents.

In other news: Struggling airline, SAA, has been hit with a R107 million fine for anti-competitive behaviour – adding to a long list of woes at the company. SAA is being nailed for using its dominant position in the market to divert customers from competitors such as Nationwide Airlines, which was forced into liquidation because of SAA’s actions.