Government

5 important things happening in South Africa today

Staff Writer

 ·6 May 2022

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

• 10% wage increase: Cosatu says that the 10% wage increase demand for public servants would cost the state R66.5 billion. Public sector unions have been in negotiations with the government for weeks, arguing that workers are in a dire situation and with the recent increase in the cost of living, public servants are finding it unaffordable. The government has only budgeted R20 billion for the compensation bill and questions regarding where the extra R40 billion will come from are being raised. [EWN]

• Covid regulation concern: The government’s latest regulations managing Covid-19, which were published before midnight on 4 May, have been criticised by lobby groups, the DA as well as the leisure industry for being unscientific, irrational and the cause of delaying economic recovery for sectors that have suffered the brunt of the pandemic – such as the tourism industry. The new measures require people to continue to wear masks in public indoor spaces, limit the size of gatherings and set out testing requirements for visitors to South Africa. [BusinessLive]

• Failed SOE: Companies that rely on Transnet have lamented the fact that the SOE is in a state of free fall. In 1996, Transnet was capable of moving 56 million tons of coal to the Richards Bay Coal Terminal, however, only 49 million tons of coal is currently predicted to make it to the terminal this year. The railing crisis is said to be the biggest issue facing the coal industry in South Africa, especially when international demand for coal is high. [News24]

• Operation Vulindela: The joint initiative launched by the Presidency and the National Treasury in 2020 to accelerate the implementation of structural reforms and support economic recovery after the Covid-19 pandemic is making excellent progress, according to the National Treasury. Of 26 reforms put in place, eight are complete and 11 are on track. The chief director of microeconomics in the Treasury says five reforms have implementation concerns, and two have gone ‘off-track’. [Moneyweb] [News24]

• Markets: Global equity markets fell as US Treasury yields jumped on Thursday. New data from a chief economist at Natixis shows that the long end of the Us Treasury market has suffered the most deeply negative returns this year since 1928. Investors are worried that the Fed is going to be so aggressive with raising interest rates that they are going to take the economy into a recession. The rand is currently trading at R16.03/$, R16.88/€ and R19.81/£. [Nasdaq]