Government

5 important things happening in South Africa today

Staff Writer

 ·25 Apr 2022

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

• Energy transition discussions: Enoch Godongwana has met with the World Bank and the US Treasury over the past week, to discuss ‘issues of global significance’ while on the domestic front, South Africa’s energy transition to cleaner electricity generation. The president of the World Bank spoke with Godongwana about energy sector reforms, including the decommissioning of coal-fired power plants. In a separate meeting with the US Treasury, the same issue of energy transition was raised, and what the US can do to support the country. [News24]

• Treasury’s tough stance: The National Treasury has set the tone for tough wage negotiations with public-sector unions by outlining budgetary constraints and a commitment to keep spending in check. This comes after unions, and the government prepares for wage negotiations covering the 2023/24 fiscal year. In a presentation analysing public sector remuneration, a Treasury budget officer stressed the importance of budgetary commitments when considering public sector wage increases. [BusinessLive]

• KZN floods: KwaZulu-Natal authorities continue to tally up the total cost of the damage caused by recent severe flooding in the province. The cost of damage caused to water and sanitation infrastructure alone has been over R1 billion. Damage to rail infrastructure has roughly amounted to R950 million. The provincial premier said that people who have lost their homes would be given temporary shelter by this week. [EWN]

• NPA development: The National Prosecuting Authority in the Eastern Cape has obtained notable convictions in multiple cases involving fraud and corruption. The majority of cases involve municipal officers who work in informal consortiums to siphon money from the public. One of the most critical cases involves the loss of R25.6 million in a three-year tender contract issued by the Nelson Mandela Bay Municipality for an environmental impact assessment awarded to a company. The company was meant to be paid R350 an hour for its services; however, the first invoice reflected R1 million within 24 hours of the appointment. [Daily Maverick]

• Markets: South Africa’s rand continued its losing streak and dropped sharply on Friday to end the week down 7% against the dollar. The state of power utility Eskom and floods in KwaZulu-Natal that caused at least R10 billion of infrastructure damage reminded investors that Africa’s most industrialised economy faces significant constraints. The rand is currently trading at R15.66/$, R16.88/€ and R20.06/£. [Nasdaq]