5 important things happening in South Africa today
·12 Jun 2018
Here’s what is happening in and affecting South Africa today:
- A new report has found that Transnet wasted almost billions of rands and broke many regulations in a deal to buy 1,064 locomotives – after its now-replaced board denied any wrongdoing. The deal was initially R39 billion, but ballooned to R55 billion, with several procedures not followed and costs explained. [Bloomberg]
- South African Airways is prepping for a tough road to recovery, which could see as many as 1,500 jobs cut at the airline. CEO Vuyani Jarana said that the airline cannot carry its current numbers, and that difficult decisions would have to be made. [Reuters]
- Eskom has again said its status as a going concern is at risk, saying that the energy regulator needs to grant it R67 billion in additional revenue through price hikes to avoid crisis. Eskom wants to hike electricity prices by 20%, while Nersa granted a 5.23% hike. Eskom has approached the courts to try and force Nersa to reconsider. [Moneyweb]
- Winter rains have eased Cape Town’s drought, which has been the worst one in the region in over a century. Dam levels have risen to 31.5%, up from 21% the same time last year. Despite the rising dam levels, residents have been warned not to go back to old consumption habits, and have been urged to keep to the 50 litres a day restrictions. [Reuters]
- South Africa’s rand headed lower for the third day in a row on Monday, trading near a six-month low as investors awaited a ratings review by Fitch and important local data. On Tuesday the rand was trading at R13.16 to the dollar, R17.59 to the pound and R15.49 to the euro.
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