Government

5 important things happening in South Africa today

Staff Writer

 ·13 Jun 2022

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

• Basic income grant: The Centre for Development and Enterprise (CDE) says that South Africa cannot afford a basic income grant. The latest report from the centre estimated that 60% of South Africans live below the poverty line. However, it stressed that the country could not afford the different proposals for an income grant which ranges between R200 billion to R300 billion annually. The CDE said government spending is already unaffordable and there is growing debt. [ENCA]

• Fuel retailer criticism: Fuel retailers criticised the Department of Mineral Resources and Energy (DMRE) and the Road Accident Fund (RAF) over tax-related matters and raising the fuel levy. The director-general of minerals at the DMRE responded, saying that retailers must steer clear of politicising issues and not deflect by pointing fingers at the government when they are the biggest beneficiaries of the current high oil price. [Moneyweb]

• More state involvement: President Cyril Ramaphosa said the state should ideally be more active in the economy, supporting industries. In a media briefing late last week, the President pointed to the automotive industry as an example of how government incentives improved business. Industry sources suggested that the cost of incentives in the automotive sector ranged from R6 billion to R20 billion since 2013. The government has developed plans to intervene in the agriculture and textile sectors. [BusinessLive]

• State capture: Ahead of publishing the final State Capture report, three recently-resigned top staff members of Chief Justice Raymond Zondo’s office have been involved in a contract that has seemingly made them overnight millionaires. The contract between the three and multinational media company Thomson Reuters has been put on hold and faces an investigation as it has the hallmarks of corrupt deals Zondo has addressed once before. The final State Capture report is meant to be made public on 15 June however, it may now be further delayed. [Daily Maverick]

• Markets: International oil prices slid on Monday as Covid-19 cases in Beijing rise and quelled hopes for a pick-up in China’s fuel demand while worries about global inflation and slow economic growth further depressed the market.  The rand is currently trading at R15.97/$, R16.76/€ and R19.63/£. [Reuters]