Business

5 important things happening in South Africa today

Staff Writer

 ·22 Nov 2022

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

• Poultry price increase: South Africa’s largest poultry producer Astral Foods warns that poultry prices will rise as producers will have to pass on more costs to cash-strapped consumers. The sector is grappling with rampant raw material increases, intensive load shedding and municipal service delivery failures. The producer highlighted that price increases of 12% reflected in its results were there to mitigate raw material input costs of the previous year alone. [News24]

• Karpowership relaunch: The floating power-ship company relaunched a series of public meetings this week as it plans to moor its vessels at three South African harbours to ease the country’s crippling power cuts – arguing that it could provide 1,220 MW of power to the national grid. However, in June 2021, the Department of Forestry, Fisheries and the Environment (DFFE) criticised its public consultation process and failure to submit an underwater noise modelling study. [News24]

• Taxi Strike: Cape Town’s local taxi associations embarked on a two-day strike on Tuesday (22 November) to protest against several grievances, including the termination of an incentive program. The protest targeted other modes of transport, resulting in two buses being set on fire on Monday. However, the City of Cape Town said public transportation would remain operational during the strike and be escorted by the SAPS. [CNBC Africa]

• Eskom diesel funding: Citibank economist Gina Schoeman says intense load shedding for an extended period will be more costly than if Eskom was provided with the liquidity. She suggested Eskom receive the additional R10 billion to R20 billion that Finance Minister Enoch Godongwana said was available in the medium-term budget policy statement resulting from the tax overrun. Economist Dawie Roodt said it’s also time for Eskom to cut its workforce, which would also free up some liquidity. [Moneyweb]

• Markets: South Africa’s rand weakened on Monday (21 November) as market sentiment was dented by worries about rising Covid cases in China and tightening restrictions in some cities of the world’s second-biggest economy. “The rand remains vulnerable to global risk sentiment, while domestically, markets are tending towards a 75bp instead of a 100bp hike from the MPC this week, which is also weakening the rand,” Investec analyst Annabel Bishop said in a research note. On Tuesday (22 November), the rand was trading at R17.28/$, R17.72/€ and R20.47/£. Brent crude is trading at $87.88 a barrel. [Nasdaq]