Finance

5 important things happening in South Africa today

Staff Writer

 ·17 Apr 2020

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

Coronavirus: Global coronavirus infections have risen to 2,183,148, with 146,841 deaths. 547,679 people have recovered, however, 1,488,628 cases remain active with 694,520 people in serious or critical condition. In South Africa, confirmed cases have risen to 2,605, with 48 deaths.

• Biggest threat: Hunger is currently the greatest threat to the well-being of South Africans who live well below the bread line during the lockdown. The country faces huge challenges to get food to millions in need at this time. And hunger during the extended lockdown period is spilling over on to the streets with reports of grocery stores being looted. It is clear that all three tiers of government are well aware of the threat, but the logistical challenges of providing food may not be able to be resolved through existing systems. [Daily Maverick]

• Going it alone: South Africa has not approached the International Monetary Fund (IMF) for financial assistance amid the Covid-19 fallout. “There are no discussions on financing with [the] South African government,” said Abebe Aemro Selassie, director of the African Department at the IMF. Selassie’s comment comes amid speculation that the government could be forced to approach the IMF for funding, with Reserve Bank recently saying that it expects the country’s gross domestic product (GDP) in 2020, to contract by 6.1%. [MoneyWeb]

• Outbreak in Africa: Coronavirus cases in Africa could climb to 10 million within three to six months, a regional World Health Organisation official said, citing provisional modelling. But Michel Yao, head of emergency operations for WHO Africa, stressed the word ‘tentative’ and noted that worst-case predictions for the Ebola outbreak had not come true because people changed behaviour over time. “This is still to be fine-tuned,” he told a media teleconference. “It’s difficult to make a long-term estimation because the context changes too much and also public health measures when they are fully implemented, they can actually have an impact.” [Reuters]

• Economic jolt: Government has amended the Disaster Management Regulations governing the Covid-19 lockdown on certain industries, including mining. To this effect, the regulations have been amended to include a number of industries as essential trade. However, there are questions about the safety of miners and the spread of the disease. Minerals and Energy minister Gwede Mantashe has announced that it’s important for some operations to continue as vital maintenance is needed. Mantashe said this was critical, especially at the deeper shafts. “If they’re left alone for a long time, the stability of the ground is tampered with, while secondly, gases accumulate. [EWN]

• Markets: South Africa’s rand edged lower on Thursday as investors digested grim warnings about the global economy and looked ahead to US jobless claims data which has lately been a barometer of the impact of the coronavirus. On Friday the rand was trading at R18.66 to the dollar, R23.33 to the pound and R20.29 to the euro. [XE]