Finance

5 important things happening in South Africa today

Staff Writer

 ·7 Sep 2022

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

• Shrinking tax base: Tax experts have raised red flags over South Africa’s shrinking tax base, forcing SARS to tighten the rope around the remaining taxpayers. South Africa’s population has grown from 45 million people to over 60 million people over the 20 years, but the tax base has gone the other way, leaving a smaller group of taxpayers carrying a much larger population. The experts said that SARS is finding untapped tax markets, but the real solution is to grow the economy. [702]

• Skill visas: The Department of Home Affairs has backtracked on a centralised skill visa system that forced all critical skill visas to be processed in Pretoria. This was intended to clamp down on fraud and corruption. The u-turn was due to the major delays the change was causing. Various embassies will now go back to processing these visas on-site – however, the sudden change has left questions and confusion about the state of the visas already in process. [BusinessLive]

• Precursor to 2024: The mess in Johannesburg’s city council is a precursor to South Africa’s broader political landscape in 2024, analysts say, with the breakdown of coalitions, minority parties fluctuating in loyalty, and bigger parties doing anything it takes to hold on to state power being the name of the game. The events of the past few weeks give a preview of how difficult it will be for any one party to remain in control as long as political opponents are determined to wheel and deal to topple them. [Daily Maverick]

• Zuma intimidation: Former president Jacob Zuma has resorted to ‘intimidation tactics’ to silence journalists and attack media freedom in South Africa. News24 journalist Karyn Maughan and advocate Billy Downer, who is leading the fraud and corruption case against Zuma, were hit with summonses by his legal team on charges of violating the National Prosecutions Act. New24 reported on Zuma’s medical conditions, which were attached to court documents submitted last year, making it a matter of public record. [News24]

• Markets: South Africa’s rand weakened on Tuesday as the dollar marched higher after a report on the US services industry reinforced the view that the economy was not in recession. Data from the statistics agency showed that South Africa’s economy contracted back to pre-pandemic size in the second quarter, weakened by floods that disrupted operations at a key export hub and the country’s worst-ever power cuts. On Wednesday, the rand was trading at R17.36/$, R17.17/€ and R19.92/£. Brent crude is trading at $ a barrel. [Reuters]