Energy

5 important things happening in South Africa today

Luke Fraser

 ·15 May 2023

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

• Coal gets a no: Kweku Bedu-Addo, the CEO of Standard Chartered Bank Southern Africa, says further investment in Eskom’s ageing coal-fired power plants is unlikely as investment firms turn towards greener investments. In April, the electricity minister Kgosientsho Ramokgopa said that private investment was needed to extend the lifespan of Eskom’s ageing coal-fired fleet to reduce load shedding. However, Bedu-Addo said that investors do not want to be trapped in standard assets as they face pressure from climate lobbyists. [Business Day]

• Premier’s degree fraud: Eastern Cape Premier Oscar Mabuyane is the latest politician allegedly involved in a degree scam at the University of Fort Hare. Mabuyane tried to enter into a PhD in Public Administration; however, a forensic report commissioned by the institution said that a Professor and a set of research assistants constantly altered the premier’s Master’s proposal. Moreover, the premier was admitted to the Master’s program without holding an honours degree. [News24]

• Steinhoff sale: The Public Investment Corporation (PIC) has sold more than half of its stake in the controversial retailer Steinhoff. In a filing with the Netherlands Authority for Financial Markets (AFM), the company disposed of over 180 million shares – 4.22% of the company. Due to the collapse of the Steinhoff share price in December 2022 following a proposed restructuring where creditors would receive 80% of a new unlisted holding company, it is unlikely that the PIC raised more than R40 million in the sale. [Moneyweb]

• Another Joburg Mayor: The City of Johannesburg has seen a revolving door of mayors since the start of the year, and it now has a new acting Mayor, the Patriotic Alliance’s Kenny Kunene. Kunene, the city’s Transport MMC, will take the helm while the City’s Mayor, Kabelo Gwamanda from the Al Jama-ah party, is absent from the city. [EWN]

• Markets: The South African rand hit a new all-time low against the dollar on Friday, extending steep losses from the previous day. The day prior, US Ambassador, Reuben Brigety, said that he was confident that a Russian ship had picked up weapons in South Africa last year. His comments came at a time when investor sentiment was already low due to load shedding. On Monday (15 May), the rand was trading at R19.10/$, R20.76/€, and R23.79/£. Brent crude is trading at $73.60 a barrel. [Nasdaq]