Energy

5 important things happening in South Africa today

Luke Fraser

 ·18 May 2023

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

• Mantashe’s exploration: Mineral Resources and Energy Minister Gwede Mantashe says South Africa will allow for gas and oil exploration as it has significant economic benefits, despite the government currently fighting the matter in court. Mantashe also said that the moratorium on shale gas exploration would be lifted, allowing Shell and other companies to explore shale gas in the country. In 2021, Shell was prevented by the courts from exploring for oil on South Africa’s wild coast. [EWN]

• China’s load shedding help: Minister of public enterprises Pravin Gordhan says acting Eskom CEO Calib Cassim met with several entities in China who offered to help with South Africa’s power crisis. Speaking before parliament’s standing committee on public accounts (Scopa), Gordhan said he was not qualified to discuss the issue, which is why Eskom officials travelled with him to China. He added that the country has met with several other counties to help with the crisis, but not every interaction has been successful. [BusinessDay]

• Chip price jump: The International Trade Administration Commission (Itac) is introducing major import duties – ranging from 8% to 8.8% and 239% – on imported frozen potato chips from European countries, which will significantly increase the prices in South Africa. The move aims to prevent dumping on the South African Customs Union (Sacu) market. However, Hume International, a significant importer of chips, said that the price increases are substantial given the current economic hardships in South Africa. [Moneyweb]

• Russian friends: An inter-ministerial committee led by Deputy President Paul Mashatile is looking at possible loopholes allowing Russian President Validmin Putin to visit South Africa. For instance, Putin currently faces an arrest warrant from the International Criminal Court. However, Zane Dangor, director-general of the Department of International Relations and Cooperation, said South Africa could not arrest Putin as the warrant did not come from the UN Security Council. [News24]

• Markets: The South African rand weakened on Wednesday, with sentiment souring following local media reports of a further delay to maintenance at the country’s only nuclear power station, heightening fears that South Africa’s ongoing power crisis will deepen. On Thursday (18 May), the rand was trading at R19.29/$, R20.90/€, and R24.06/£. Brent crude is trading at $76.67 a barrel. [Nasdaq]