Business

5 important things happening in South Africa today

Staff Writer

 ·26 Jul 2022

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

• No go: Business groups in South Africa are set to reject a social compact and framework from the government, which asks them to commit to investment and employment targets while restricting retrenchment – in return, the government promises to cut red tape, improve the economy, and mop up state-owned companies. Business groups say that the ask crosses many red lines and involves decisions informed by management and the business environment. They noted previous social compacts with the government had delivered very little. [News24]

• Squatters: South Africa is seeing a steady rise in the number of residents considered squatters – people who occupy premises without paying rent for three months or more. TPN Credit Bureau noted the increase over the last decade. It said the issue has been particularly egregious during the previous two years. Some tenants continue to abuse the rental system to their advantage following payment holidays given during the pandemic. [Moneyweb]

• Extradited: The Justice and Correctional services department has submitted extradition applications to the United Arab Emirates to bring the Guptas to South Africa to face the courts. The brothers, Atul and Ajay Gupta are wanted on charges of fraud and corruption related to the R29 million Nulane investment scam and the Estina dairy farm scam. The brothers were denied bail in the UAE and remain behind bars while the extradition process plays out. [TimesLive]

• Step aside: The ANC is entering a proxy war by policy as president Cyril Ramaphosa’s opponents draw battle lines at the party’s step-aside rule. Ramaphosa’s loss in KZN this past weekend has led to an aggressive push to have the step aside rule thrown out. As long as the rule stands, many of Ramaphosa’s political opponents would be kept out of the running for leadership positions. This includes Zweli Mkhize, Ace Magashule and Zandile Gumede, who all face corruption charges. [Daily Maverick]

• Markets: South Africa’s rand firmed on Monday as the dollar weakened against a basket of major currencies ahead of the US Federal Reserve policy meeting on Wednesday. Economists noted that, should the Fed deliver a 100 bp hike this week, the rand will likely weaken, while a smaller move of 50 bp) could see rand strengthen. South Africa’s central bank raised its main lending rate last week, by 75 bps to 5.50%. On Tuesday, the rand was trading at R16.75/$, R17.13/€ and R20.21/£. Brent crude was trading at $107 a barrel. [Reuters]