5 important things happening in South Africa today
·10 Jun 2019
Here’s what is happening in and affecting South Africa today:
- South Africa has ‘no choice’ but to keep throwing money at Eskom, according to National Treasury, as the power utility continues to struggle with a R450 billion debt problem. National Treasury Director General Dondo Mogajane said that government expects changes at Eskom in return for the bailouts, but said the approved R69 billion bailout plan is not enough. [Bloomberg]
- SAA has assured stakeholders that its turnaround strategy would not be impacted by the resignation of CEO Vuyani Jarana, noting that the long-term strategy was adopted by the board. It said further that certain aspects of the strategy are already bearing fruit. A leaked resignation letter from Jarana painted a bleak picture of the airline, with the former CEO saying it lacked government support. [Moneyweb]
- Public Protector Busisiwe Mkhwebane is facing for challenges to her reports, this time from the former Financial Services Board, which claims the PP was biased, and incompetent in releasing findings against the group. Mkhwebane made startling claims on Friday that she was appointed to the position by God, and could only be removed by God if he believes she has failed. [TimesLive, Daily Maverick]
- South Africa has lost its crown as Africa’s biggest gold producer, as Ghana elevates to the top spot. Mining companies are increasingly looking elsewhere to mine for gold, as frequent strike action, rising costs and diminishing returns affect production in South Africa. About half the gold ever mined has been extracted from South Africa. [Bloomberg]
- South Africa’s rand fell again on Friday, reaching a new 2019 low as assurances by the ANC about the independence of the central bank did little to ease nerves about economic policy. On Monday the rand was at R14.98 to the dollar, R19.03 to the pound and R16.93 to the euro.
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