Finance

5 important things happening in South Africa today

Staff Writer

 ·4 Feb 2021

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

Coronavirus: Global Covid-19 infections have hit 104.9 million confirmed, with the death toll reaching 2.28 million. In South Africa, there have been 4,058 new cases, taking the total reported to 1,463,016. Deaths have reached 45,344 (a daily increase of 398), while recoveries have climbed to 1,323,680, leaving the country with a balance of 93,992 active cases.

• Over taxed: South Africa is has reached the point in the Laffer Curve where, despite increasing taxes – and plans to add even more over the next three years – SARS is collecting less tax. Experts say that South Africans have little tolerance for more taxes, no matter the guise or label that is given to them, and that if government wants to boost revenue, it has to plug the leaking holes in the national budget and start cutting spending. Targetting the same people who already pay their fair share will only lead to avoidance and capital flight. [Moneyweb]

• More vaccines: South Africa is set to receive 3.1 million more Covid-19 vaccines through the Covax facility, including 2.8 million doses from AstraZeneca and 117,000 from Pfizer which have been made available to South Africa. The vaccines are expected to be delivered in the first half of the year adding to the 42 million other doses already secured. A big challenge provinces face with the vaccine rollout is keeping the doses cool – but the Health Department says that regions are ready to start inoculations once they are received by provinces next week. [ENCA]

• Dire: The situation at South Africa’s major public enterprises is dire, and the public spending watchdog Scopa is concerned that little is being done to remedy the situation, while those responsible face no consequences. Scopa was presented with a report on the state of SOEs like SAA, Eskom, Denel and Transnet, which painted a very bleak picture of operations. It said these institutions are in “dire straits”, and serious discussions need to be had about the lack of consequences for financial mismanagement. [Daily Maverick]

• Nothing wrong: ANC secretary general Ace Magashule says former president Jacob Zuma has done nothing wrong, and critics must leave him alone. This, after Zuma has stated his intent to openly defy the Constitutional Court, which compelled him to appear before the State Capture Commission. The ANC in the Eastern Cape is calling for Zuma’s removal from the party, but the party as a whole is yet to make a statement about the saga. Analysts say the lack of response makes the party complicit, while Magashule’s statement sends the wrong signal. [TimesLive]

• Markets: Yield seeking is benefiting the rand which continues to test the R14.90 to the dollar mark for further strength. The Band of England is due to announce its interest rate decision today, while the US will release the initial jobless claims data. The rand starts the day on Thursday at R14.93 to the dollar, R17.97 to the euro and R20.37 to the pound. Commentary by Peregrine Treasury Solutions. [XE]