Business

5 important things happening in South Africa today

Luke Fraser

 ·24 Mar 2023

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

• Cape Town energy plan:  The City of Cape Town (CoCT) says discussions are underway with Eskom to take over the electricity supply of areas of the city that the embattled power utility still supplies. CoCT Mayor Geordin Hill-Lewis said that he could not discuss specific details as he signed a non-disclosure agreement as it relates to negotiations with unions and other parties. Hill-Lewis added that he hoped Eskom’s incoming management is as committed to the talks as the outgoing management. [EWN]

• Makro strike: The SA Commercial Catering and Allied Workers Union (Saccawu) is starting a 10-day strike at Massmart-owned Makro today. Saccawu is asking for a R900 or 12% – whichever is higher – increase, a minimum monthly wage of R8,000, a moratorium on retrenchment, a uniform allowance, a 13th cheque, improved commissions, and an increase in working hours from 160 to 195 a month. [BusinessDay]

• Faith in taxi owner: Transaction Capital’s second-largest shareholder fund manager Coronation says the former’s share price can recover as two of its businesses look great in the long term. Last week, Transaction Capital’s shares lost nearly 70% of their value after it said that SA Taxi had structural problems, which meant they could stick with the company for an extended time. It also said that its core earnings could drop by nearly 50%. However, Coronation said that WeBuyCars and Nutun are worth double the current share price. [BusinessDay]

• Russia stance criticised: During the official state visit by the King and Queen of Belgium, Belgian Foreign Affairs Minister Hadja Lahbib criticised South Africa’s non-aligned stance in regard to the war in Ukraine. She said that South Africa should use its relationship with Russia to promote peace. President Cyril Ramaphosa said that the country is advocating for a peaceful solution with Russia. Despite the international criminal court issuing an arrest warrant for Vladimir Putin, the Russian leader has been invited to the BRICS summit in August. [News24]

• Markets: South Africa’s rand strengthened against a weaker dollar on Thursday after the US Federal Reserve signalled that it would pause its interest rate hiking path. The Fed on Wednesday raised interest rates by a widely expected 25 basis points, but dropped language about “ongoing increases” being needed in favour of “some additional” rises, as it watches how wobbling confidence in banks affects the economy. On Friday (24 March), the rand was trading at R18.11/$, R19.62/€, and R22.34/£. Brent crude is trading at $75.74 a barrel. [Nasdaq]