Business

5 important things happening in South Africa today

Staff Writer

 ·25 Nov 2022

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

• More interest rates coming: The South African Reserve Bank is not calling it quits on interest rate hikes just yet, with Reserve Bank governor Lesetja Kganyago saying that the central bank will use its policy decision to keep a lid on inflation until it is brought back into range. Economists and analysts are expecting rate hikes to continue into 2023. Inflation remains stubbornly high, with the latest print surprising even the SARB at 7.6% in October. [BusinesLive]

• Organised crime: The NPA says that organised crime in South Africa has become so multi-faceted that it is now driving up other crime rates like murder and kidnappings – with South Africa’s economy suffering as a result. Speaking on a panel during the Daily Maverick’s The Gathering, the NPA said that the problem is so great that there’s no way to prosecute ourselves out of the situation, and there needs to be a fundamental shift in the country to clean house, across the board. [Daily Maverick]

• Municipal battle: Several arrests of municipal managers show that the high-priority crime unit, the Hawks, is moving its fights against corruption to more localised cases. While South Africans yearn for the big fish to be caught, most of the country’s corrupt activities take place at a local government level. The crimes being investigated range from financial crimes to kidnappings, as well as corruption. [Moneyweb]

• Politics over people: Joburg mayor Mayor Mpho Phalatse has dodged yet another bid to oust her from office; however, the ANC has vowed to make another attempt soon. A motion of no confidence vote against Phalatse was withdrawn on Thursday. The ANC said it is in negotiations with the EFF and will table another motion once they have concluded. The city has no rules in place limiting the number of motions that can be submitted, or placing a timeout between them, which Phalatse said is highly disruptive. [EWN]

• Markets: The rand was flat against the dollar after the central bank hiked the repo rate by 75 basis points to tame rising inflation but lowered its growth forecast for the year impacted by power cuts as coal-fired state power utility Eskom struggles with power generation. On Friday, the rand was back above R17 to the dollar, trading at R17.01/$, R17.72/€ and R20.59/£. Brent crude is trading at $86 a barrel. [Reuters]