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5 important things happening in South Africa today

Staff Writer

 ·1 Apr 2022

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

Coronavirus: In South Africa, 12 new Covid-19 deaths have been reported, totalling 100,032. The country has 15,100 active cases and a recovery rate of 96.9%.

• New police commissioner: President Cyril Ramaphosa has announced Fannie Masemola as South Africa’s new national police commissioner. Ramaphosa said that the new police commissioner now has the ‘weight of the nation’s expectations’ on his shoulders. Masemola was reportedly a former head of the police’s VIP Protection Unit. This follows Khehla Sitole leaving the position after close to five years. More changes within the South African security sector are expected. [Daily Maverick]

• Gas power: A new report exploring the case for gas-fired power in South Africa by the International Institute for Sustainable Development has noted that the national energy sector should future-proof itself and end load shedding by only investing in gas-fired power in the next decade. The report details that introducing the first 3,000 megawatts of gas capacity by 2030 could cost around R37 billion. To pre-empt a ‘costly mistake,’ the report suggests that the information focuses more on wind and solar farms as they are 57% cheaper than gas plants. According to the institute, the short-term focus of the energy sector should be centred on the rapid addition of least-cost renewable capacity coupled with storage. [Moneyweb]

• Fuel price cut: South Africa’s largest trade union conglomerate Cosatu has welcomed the relief provided by finance minister Enoch Godongwana’s announcement of an R1.50 per litre reduction in the fuel price. Cosatu said that it is the best option available in difficult times, despite only providing intermediate relief for two months. It said that it would provide necessary relief to workers and commuters in an economy struggling to cope with painful fuel price increases and a rise in the cost of transport, food and consumer goods. [ENCA]

• Electricity tariff hike: From 1 April, customers reliant on power utility Eskom will have to pay more for electricity. The utility initially sought a 20.5% tariff hike, but regulator Nersa only granted it a 9.61% increase earlier this year. The general manager for regulation said that the tariff increase impacts customers who directly buy electricity from them. While the increase is much lower than Eskom wanted, for customers, it remains far above headline inflation and will contribute to the rising cost of living. A tariff hike for municipalities is set to come into effect in July. [EWN]

• Markets: South Africa’s rand fell in early trade on Thursday as uncertainty over the war in Ukraine dragged on, and commodities such as gold, platinum and palladium prices fell. The rand has strengthened almost 10% this year, making it one of the best performing emerging market currencies, according to Refinitiv data. The rand is currently trading at R14.62/$, R16.18/€ and R19.20£. [Nasdaq]