Business

5 important things happening in South Africa today

Staff Writer

 ·17 Nov 2022

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

• Post Office begs for billions:  The SA Post Office (Sapo) asks the government for a R3.4 billion bailout. It needs funding of R1 billion before end-March 2023 to meet its cash flow deficit and R2.4 billion more to roll out its new strategy, says the department of communication & digital technologies. Sapo’s total liabilities sit at R8.2 billion, and without this cash injection, the auditor-general doubts the technically insolvent company can stay afloat. [BusinessLive]

• D-Day for National Treasury: Today (17 November) is the day for the National Treasury to respond to the Public Servants Association of South Africa (PSA) and health professionals union Hospersa’s wage demands. They gave the government a seven-day ultimatum to respond to calls for a 10% wage increase across the board. If National Treasury fails to respond to the wage demands by public service unions, they vowed to inflict another national shutdown. [EWN]

• R40 billion Transnet investigation:  The National Prosecuting Authority (NPA) is investigating whether two Chinese rail groups made illegal payments to Gupta associate Salim Essa after they won contracts to supply around 700 locomotives to Transnet. In documents presented to Parliament this week, investigators say they are probing contracts worth R40.1 billion linked to payments for the locomotives. The actual amount of what the NPA believes was stolen will likely only be known once its charge sheet is submitted to the court. [News24]

• Flights from Germany to Kruger: In a significant tourism coup for Mpumalanga and South Africa’s world-renowned Kruger National Park, German airline giant Lufthansa Group’s leisure-carrier Eurowings Discover on Wednesday (16 November) commenced direct international flights between Frankfurt and the province. This represents the first-ever scheduled long-haul international air service to Kruger Mpumalanga International Airport (KMIA). [Moneyweb]

• Markets:  The South African rand firmed on Wednesday (16 November) despite poor domestic retail sales data, taking its direction from the dollar, which slid as geopolitical tensions eased. South African retail sales fell by 0.6% year-on-year in September after rising by a revised 2.1% in August. Therefore, economists predicted sales would increase by 1% year-on-year in September. On Thursday (17 November), the rand was trading at R17.32/$, R17.97/€ and R20.59/£. Brent crude is trading at $91.84 a barrel. [Nasdaq]