Business

5 important things happening in South Africa today

Staff Writer

 ·5 Sep 2022

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

• Petrol price: The Department of Energy is expected to soon announce cuts for petrol and diesel prices in South Africa, to take effect this Wednesday (7 September). The Road Freight Association says that the cuts – expected in the region of R2.30 per litre for petrol and 85 cents per litre for diesel – will positively impact the cost of food, which soared as the truck industry tried to keep up with the relentless fuel hikes. [EWN]

• Army troubles: South Africa’s army is suffering from low morale as its numerous problems have taken root, and it struggles to operate on meagre budgets. The SANDF has faced severe budget cuts over the last few years, while it has accused the Department of Public Works of not maintaining its infrastructure and facilities. It faces a backlog of over R11 billion for repairs. As a result, facilities are run-down and unsafe for troops. [BusinessLive]

• Payments due: Eskom says that two other metros – Manguang and Ekurhuleni – have joined Tshwane in being unable to settle their electricity bills on time. Manguang is under administration as negotiating with the power utility, while Ekurhuleni is partially paying its bills and settling weeks late. Eskom has threatened to disconnect Tshwane over non-payment. The power utility has almost R50 billion in municipal debt owed to it. [Moneyweb]

• State capture: The German press is reporting that the public prosecutor’s office in Frankfurt is investigating allegations against T-Systems, a subsidiary of the partly state-owned Deutsche Telekom, in connection with Gupta-linked State Capture allegations. T-Systems was linked to the state capture saga through its relationship with Gupta-linked businessman Salim Essa, who was hired as a sales consultant for the group. [Daily Maverick]

• Markets: The South African rand was caught in the crossfire of a strengthening dollar, trading at over R17.00/$ last week as Fed Chair, Jerome Powell, suggested that the US Central Bank will keep raising interest rates to tame inflation, bolstering the greenback. The local unit ended the week squarely on the back foot. On Monday, the rand started the week at R17.41/$, R17.20/€ and R19.92/£. Brent crude is trading at $95 a barrel. [Citadel Global]