Business

5 important things happening in South Africa today

Staff Writer

 ·12 Apr 2022

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

• SA on Ukraine: 45 days after Russia launched its invasion of Ukraine, the Ukrainian ambassador has met with the director-general of South Africa’s Department of International Relations and Cooperation. The department has reportedly softened its neutral stance on the war as evidence of Russia’s atrocities during the invasion, including allegations of various war crimes. South Africa has maintained a neutral stance and has failed to identify Russia as the aggressor. President Cyril Ramaphosa is said to be closer to securing a phone call with Ukrainian president Volodymyr Zelensky. [BusinessLive]

• Failed plan: A review of the National Development Plan (NDP) shows a generally poor performance since its adoption in 2012. When the plan was implemented a decade ago, the unemployment rate was anticipated to fall from 27% in 2011 to 14% by 2022 and 6% by 2030. However, the unemployment rate now sits at 35.5% of the population. The review said that various sectors adopting and putting sectoral interests before the national plan has been one reason for poor results. [Moneyweb]

• Rewarding inefficiency: The Department of Mineral Resources and Energy says that capitulating and granting high tariff increases to Eskom is rewarding inefficiency – warning that as prices climb ever higher, manufacturers and other businesses will choose to export their processes or leave, which will damage tax revenues in the country and push unemployment higher. Eskom has been granted a 9.6% tariff hike for this year, with the power utility demanding even higher increases in the years ahead. [News24]

• Tombstone vandalism: Adding to South Africa’s problems with cable theft, criminals are now targeting other features that carry metal – including graves and tombstones. Pressure is mounting on the government to do something about criminals targeting the country’s neglected cemeteries. These sites are being targeted by thieves stripping metal from tombstones, fences and gates to sell. The crimes are not isolated, with reports of theft extending throughout the Free State, KwaZulu-Natal, Gauteng, the North West and Mpumalanga. [EWN]

• Markets: The South African rand advanced on Monday, supported by higher precious metals prices and shrugging off weaker-than-expected manufacturing numbers. Key South African exports like platinum group metals touched new highs due to supply concerns after the supply of Russian platinum and palladium was suspended from trading in London. The rand is currently trading at R14.56/$, R15.84/€ and R18.96/£. [Nasdaq]