Business

5 important things happening in South Africa today

Staff Writer

 ·4 Feb 2020

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

• Eskom plans to decommission three coal-fired power plants in the next four years, taking a further 11GW out of the system. To combat this shortfall, Mineral Resources & Energy minister Gwede Mantashe said that companies will be able to generate electricity themselves while government is also looking to fund a power generating competitor to Eskom. [BusinessDay]

• Unions have warned that thousands of people will be out a job if business rescue practitioners do not succeed in turning SAA around. “If SAA collapses, 10,000 workers and their families will suffer because of job losses, and we know that on average, workers support between five and seven extended family members, which means up to 70,000 people may be affected,” said Numsa and Sacca in a joint statement. [EWN]

• The IMF’s latest risk assessment matrix shows that South Africa’s efforts to reform its economy could be derailed by events outside its control. The group warns that there is a risk that governance setbacks or delays in the implementation of reforms will result in protracted domestic policy uncertainty, and that low growth will lead to a deterioration in banks’ asset quality and liquidity conditions. [Moneyweb]

• The ANC is pushing for much stricter punishments for sexual offence crimes in South Africa – including the possibility of medical castration. However, experts have warned that this solution is unlikely to lower the crime rate. [TimesLive]

• The rand clawed back some ground on Monday after the Chinese central bank unexpectedly cutting interest rates and pushing $171 billion into the economy to counter the negative effects of the coronavirus outbreak. On Tuesday the rand was at R14.83 to the dollar, R19.30 to the pound and R16.40 to the euro.