Finance

5 important things happening in South Africa today

Staff Writer

 ·30 May 2019

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

• Opposition parties have reacted to president Cyril Ramaphosa’s new cabinet with disappointment and disdain. The DA said that the new cabinet was not reformed enough to make any difference to South Africa’s struggles (adding the Patricia de Lille’s appointment was purely political) – while the EFF said the cabinet was a declaration of war, as it included Pravin Gordhan, who the party says is corrupt and unconstitutional. [ENCA]

• Bailouts for Eskom are putting South Africa’s credit rating at risk, the Reserve Bank says, as the power utility remains the single biggest liability on SA’s books. Moody’s is the only ratings firm to have South Africa above investment grade, and has explicitly stated that Eskom’s financial health is something it is keeping a very close eye on. [Bloomberg]

• Public protector Busisiwe Mkhwebane has rejected claims that she is unfairly targeting Pravin Gordhan, saying that he is one of many people her office is investigating. She said she is looking into complaints against former ministers Bathabile Dlamini and Nomvula Mokonyane, and denied political interference. [TimesLive]

• South African star athlete Caster Semenya will challenge the ruling by the Court of Arbitration for Sport that will allow the International Association of Athletics Federations to implement testosterone limiting regulations. The rules will force athletes like Semenya to artificially reduce their testosterone levels to compete in certain events. [Mail & Guardian]

• The rand showed little reaction to the newly appointed ministers. While the poor global backdrop continues to weigh in on the local currency, some relief can be expected during trade today. On Thursday the rand was trading at R14.62 to the dollar, R18.48 to the pound and R16.29 to the euro.