5 important things happening in South Africa today

·24 Nov 2022

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

Eskom diesel: Eskom has been given a lifeline in the form of 50 million litres of diesel from PetroSA to meet its current shortfall – however, the utility is still waiting for a more permanent solution to the funding issues around procuring fuel. Eskom wants approximately R15 billion from National Treasury to buy more diesel and other fuels. Public enterprises minister Pravin Gordhan said that discussions with Treasury are ongoing. [News24]

Rates decision: Economists and analysts expect the South African Reserve Bank to hike rates by 75 basis points today. Projections were initially split between 75bp and more optimistic 50bp – however, inflation numbers on Wednesday surprised the market by coming in higher than expected, solidifying the stance that the central bank will remain aggressive in its hike cycle. The decision will be announced at 15h00 on Thursday. [BusinessLive]

Fire with fire: Police minister Bheki Cele says that police officers need to fight fire with fire when dealing with violent criminals in the country and should not hesitate to defend themselves in kind when their lives are in danger. Presenting an alarming set of crime stats on Wednesday, Cele noted that among the 7,004 murders that took place in the country in the three months to 30 September, 22 police officers were among the victims. [EWN]

ANC elections: Following the announcement of the ANC’s top six nominations, the real battle for control of the ruling party has begun, with lines being drawn between factions and opposing talking points emerging. Despite leading the nominations for president by some margin, Cyril Ramaphosa will face opposition from Zweli Mkhize and the KwaZulu Natal branches that put his name forward. Mkhize said he had been nominated to “save” the party from divisions. [TimesLive]

Markets: South Africa’s rand strengthened on Wednesday ahead of a highly anticipated interest rate decision by the South African Reserve Bank (SARB). The uptick in inflation is likely to give impetus to the SARB’s hawkish stance at its final meeting of the year on Thursday. On Thursday, the rand was trading at R16.94/$, R17.69/€ and R20.51/£. Brent crude is trading at $85 a barrel. [Reuters]

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