Business

5 important things happening in South Africa today

Staff Writer

 ·2 Feb 2023

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

• Sanral awards R7bn contracts: The South African National Roads Agency (Sanral) has awarded four major road construction tenders to the value of R7 billion. The contract awards are for the N2 Wild Coast Highway in the Eastern Cape and the N11 highway in KwaZulu Natal. Sanral said that the awarding of the contracts will help boost the construction industry and should be seen as part of a broader government effort to invest in infrastructure. [MoneyWeb]

• PetroSA wants to reinvigorate Mossel Bay plant: PetroSA is looking for a partner to help finance its Mossel Bay plant, which has been inactive since 2020. PetroSA said that its refinery in Mossel Bay could produce fuel for up to one-third of all of South Africa’s cars. PetroSA preferably wants a state-owned or state-supported company with large amounts of oil and money as a future partner. PetroSA is willing to go into a profit-sharing agreement or hand over equity to this partner. [Business Insider]

• SA tourism spurs outrage: South African tourism minister Lindiwe Sisulu says a nearly R1 billion deal to sponsor English football club Tottenham Hotspur is on the table but has denied championing it. Tourism Department documents state that the deliverables for the project must be delivered by the end of March, with the deal activating on 1 July 2023. The deal has received widespread backlash and scrutiny across South Africa. The DA said that it will table the matter at the next tourism portfolio meeting. [Daily Maverick]

• Tshwane water protests: Residents in Soshanguve, Tshwane say they will intensify protests due to a lack of water supply. Despite Rand Water slowly returning water to areas, residents said that they would continue to protest if one household did not have any water. Load shedding has led to reservoirs lacking water, as no electricity means that pumps cannot transport water from dams to reservoirs. [EWN]

• Markets: South Africa’s rand strengthened against a weakened dollar on Wednesday as investors awaited the US Federal Reserve’s interest rate decision, which could signal the end of its tightening cycle. The Fed is expected to raise its target interest rate by 25 basis points, setting aside the rapid hikes used last year to curb a surge in inflation in favour of a more stepwise hunt for a stopping point. On Thursday (2 February), the rand was trading at R17.07/$, R18.78/€, and R21.15/£. Brent crude is trading at $83.55 a barrel. [Nasdaq]