Business

5 important things happening in South Africa today

Staff Writer

 ·30 Jul 2019

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

• Analyst Peter Attard Montalto says there is a strong risk that load shedding would return in August. He said that big power consumers have received data that shows that the power grid is still under immense pressure, and that the problems highlighted earlier in the year have not been fixed. Load shedding was ‘put to bed’ for winter, but there is a high risk it will return in Spring, he said. [702]

• Eskom is expected to publish its annual financial statements today, with many expecting the announcement of record losses for the year ended March 2019. Despite price increases of 30% over the last year, and 540% over the last decade, the power utility is in financial crisis, with government giving it multiple bailouts, The most recent of which is a proposed bailout of R59 billion. [ENCA]

• China’s ambassador to South Africa says that president Cyril Ramaphosa is the country’s ‘last hope’, stressing that he needs to turn policy into action. China is South Africa’s biggest trade partner, but has not invested in major projects in the country due to a lack of feasibility and assurances from government. He said that Chinese banks need to be reassured of profitability, sustainability and favourable investment conditions in laws passed by parliament. [TimesLive]

• Public Protector Busisiwe Mkhwebane has expressed disappointment in the latest court judgement against her, after she opposed an interdict by public enterprises minister Pravin Gordhan. The court found that Mkhwebane had no grounds to stop the interdict, and issued another cost order against her and the EFF. The ruling is the latest in a string of court cases that have not gone in the Public Protector’s favour. Her report on Gordhan will now be tested in court too. [EWN]

• South Africa’s rand bounced back from a four-week low against the dollar on Monday, but pessimism around Eskom remained as the struggling power group failed to dispel investor worries with the appointment of an interim chief executive. On Tuesday the rand was at R14.15 to the dollar, R17.17 to the pound and R15.76 to the euro.