Business

5 important things happening in South Africa today

Staff Writer

 ·1 Sep 2022

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

• What emergency: The Auditor-General has released her first report on the use of relief funds for communities in KwaZulu Natal and the Eastern Cape, showing that only 6% of the funds set aside for the emergency have been spent. Except for the social relief initiative, the emergency measures relating to mobile units, temporary residential units, water tankering services and repairs to government properties had not been completed by 31 July. [Daily Maverick]

• SARS rejection: The South African Revenue Service has rejected findings from the Nugent Commission and State Capture Commission as hearsay as it fights against a Labour Court order to reinstate former employees. The commission findings were submitted as evidence to help employees fight their unfair dismissal during the state capture saga. While SARS welcomed the findings, it rejected them as inadmissible opinions in court. [News24]

• Medical scramble: Medical scheme Health Squared took the industry by surprise two weeks ago by applying to the high court for voluntary liquidation, advising its 23,785 members their “health events” would only be covered until the end of August. The Council for Medical Schemes has failed to convince enough solvent, sizeable medical schemes to take over the members’ accounts, leaving them in the lurch and having to scramble to find their own alternatives. [BusinessLive]

• Shaky Coalition: The coalition governments set up in major metros following the 2021 local elections are starting to crumble under the weight of contrasting ideologies and shifting loyalties. City of Johannesburg speaker Vasco da Gama (DA) was removed via a motion of no confidence in the early hours of Thursday. The ANC and EFF voted together to support the motion along with other parties. It is being speculated that this is laying the foundation for the mayor’s removal. [TimesLive]

• Markets: South Africa’s rand weakened in trade on Wednesday, as the dollar hit near a two-decade peak on Monday after the Federal Reserve indicated that US interest rates would stay higher for longer. Analysts noted that the USD-ZAR appears to be caught in a tunnel between R16.75 and R17.00, with any sustained breaks out of this range holding the potential to kickstart a new trend. On Thursday, the rand was trading at R17.18/$, R17.21/€ and R19.90/£. Brent crude is trading at $95 a barrel. [Reuters]