Business

5 important things happening in South Africa today

Staff Writer

 ·25 Nov 2020

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

Coronavirus: Global Covid-19 infections have hit 59.3 million confirmed, with the death toll reaching 1,398,000. In South Africa, there have been 2,493 new cases, taking the total reported to 772,252. Deaths have reached 21,083 (a daily increase of 115), while recoveries have climbed to 716,444, leaving the country with a balance of 34,725 active cases.

• Strike: The National Education, Health and Allied Workers’ Union is gearing up its members to embark on a nationwide strike on Thursday, petitioning government on many issues faced by South Africa’s healthcare workers. The strike is against poor working conditions for doctors and nurses in the country’s hospitals, the planned wage freeze for public sector workers, and a push to get workers employed permanently in their respective departments. [ENCA]

• Alcohol ban: Research around South Africa’s alcohol ban during lockdown shows that the prohibition saved 21 lives a day – meaning it helped avoid around 740 alcohol related fatalities over the five week period. Put into perspective, this was a 14% drop in ‘unnatural’ deaths recorded over the period, pointing to a devastating effect that alcohol has on South African society. The research looked at the impact on unnatural deaths only, and did not assess the impact on other social ills – nor the economic impact of the ban being in place and those consequences. [TimesLive]

• Withdrawn: SARB and the Financial Sector Conduct Authority are withdrawing a circular on exchange controls, which was being interpreted by some in financial services as allowing South Africans to invest more of their money overseas. The circular moved to define inward-listed international instruments as local instruments. However, this left confusion around whether the 30% limit on holding international instruments was still in effect. The circular has been suspended, pending a review. [Moneyweb]

• Vaccine SA: South Africa is securing access to Covid-19 vaccines through a R500 million payment to participate in a consortium developing them. This is the first part of a R5 billion planned spend on Covid vaccines over the coming years, finance minister Tito Mboweni said. There have been concerns that high income countries would effectively step over the poor to grab available vaccines first, as three treatments near viability for rollout. [Jacaranda]

• Markets: The overnight Wall Street rally saw investors sending equity markets soaring, while emerging markets partook in the extensive rally. The rally, sparked by upbeat sentiment about vaccines and the start of a formal transfer of presidential power to president-elect Biden, saw positive movement across the board. Local CPI, followed by US GDP and employment, will be released today. The rand starts the day on the front foot at R15.20 to the dollar, R18.09 to the euro and R20.30 tot he pound. Commentary by Peregrine Treasury Solutions. [XE]