Business

5 important things happening in South Africa today

Staff Writer

 ·18 Aug 2022

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

• Reserve Bank warning: The South Africa Reserve Bank has warned that the worrying trend of above-inflation wage hikes being granted to unions threatening strikes will lead to a price spiral. Because productivity gains in the various sectors do not offset the larger wage hikes, this will likely lead to inflation. This, in turn, will require a harsher monetary response from the central bank. The bank is already in a hiking cycle, with most economists anticipating at least another 100bp hike by the end of the year. [BusinessLive]

• Healthcare crisis: Civil rights activists are calling for healthcare professionals and the industry as a whole to push and take over control of the country’s crumbling healthcare sector from politicians. They say the country has the skills and capacity to have excellent healthcare but is hamstrung by a lack of visionary political leadership, skilled and accountable management of health facilities, and quality communication with the people who use it. [Daily Maverick]

• Gautrain route: The Gautrain Management Agency is being bombarded with complaints over a proposal to extend the system’s routes along a new east-west line. Most of the complaints related to the high cost of tickets and the company’s failure to reduce congestion in Joburg. Questions have also been raised as to why the group is spending so much money expropriating properties to make way for new routes instead of taking the system fully underground. [Moneyweb]

• ANC pensions: The Financial Sector Conduct Authority (FSCA) has ordered the ANC to pay up its provident fund, which has fallen into arrears to the tune of R86 million. Over 500 employees have been locked out of their pensions because the party failed to keep up to date with payments. The party has been struggling with cash-flow challenges over the past years, with workers having to strike every month before their salaries are paid. It also owes the South African Revenue Service more than R102 million in taxes. [EWN]

• Markets: The South African rand was slightly firmer in early trade on Wednesday, ahead of local retail sales figures and US Federal Reserve minutes. Retail trade sales decreased by 2.5% year-on-year in June, mainly dragged lower by general dealers, data from StatsSA showed. Other data releases suggest South Africa’s economy struggled for momentum in the second quarter amid damaging floods and extensive power cuts. On Thursday, the rand was trading at R16.66/$, R16.95/€ and R20.06/£. Brent crude is trading at $94 a barrel. [BusinessTech]