5 important things happening in South Africa today

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

• Transnet strikes a deal: Transnet announced a three-year deal with the United National Transport Union (Untu) on Monday (17 October). Untu represents 54% of unionised employees, and the agreement includes a 6% increase in 2022 (from 1 April), a 5.5% increase in 2023, and a 6% increase in 2024 (ending March 2025). Other unions, however, have still not reached an agreement, and Satawu says Untu has ‘insulted’ unions by signing a 6% wage agreement with Transnet. [BusinessLIVE]

• Gauteng water aid: Water and sanitation minister Senzo Mchunu met with Rand Water, three Gauteng metros and representatives from local municipalities on Monday (17 October) and has agreed to increase bulk water allocation to Rand Water temporarily. Mchunu hopes this emergency relief will help struggling municipalities dealing with water restrictions and shortages. [eNCA]

• Eskom increases debt: Increased tariffs and higher taxes could be on the cards as consumers are set to bear the brunt of Eskom’s rising debt after the World Bank granted the power utility a R9 billion loan. Economist Lungile Mashele said that because of Eskom’s existing debt, which totals R396 billion, an extra R9 billion would be detrimental to the economy. She warned that the financial burdens of the loan would be placed on citizens in a society already rife with unemployment and poverty. [Mail & Gaurdian]

• KZN construction mafia concerns: JSE-listed developer Calgro M3 is actively trading out KwaZulu Natal due to construction mafias. Calgro CEO Wikus Lategan says that these mafias have made it impossible to do business as violent groups invade construction projects and demand stakes of contracts. He added that the lives of its employees are constantly being threatened, and the company wants out. [News24]

• Markets: South Africa’s rand strengthened on Monday (17 October), in line with several global currencies, after Britain’s new finance minister reversed many of the government’s “mini-budget” plans that had spurred a market turmoil last week. The Top-40 and the broader all-share indexes rose by 3.1% and 2.9%, respectively. The rand is currently trading at R17.96/$, R17.71/€ and R20.44/£. Brent crude is trading at $92.39 a barrel. [Nasdaq]