Business

5 important things happening in South Africa today

Luke Fraser

 ·13 Jun 2023

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

• Mozambique to the rescue: Mozambique will supply 1,000 MW of gas-fired power to Eskom, reducing load shedding by one stage. The deal forms part of Electricity Minister Kgosientsho Ramokgopa’s plan to tackle the energy crisis. The minister added that the government expected a much harsher winter, adding that Eskom should be able to keep load shedding at lower stages if it can keep breakdowns below 15,000 and has sufficient diesel reserves. [EWN]

• Two-pot concerns: National Treasury says the new ‘two-pot’ retirement should be implemented on 1 March 2024. However, industry experts said that it would be impossible to restructure their retirement funds effectively within eight months. Funds will have to introduce new rules and policy terms, which must be accepted by trustees and pension fund boards, with the Financial Sector Conduct Authority then approving each fund. [News24, BusinessTech]

• Rail positives: Transnet is on course to fix its coal locomotives, which has been one of the embattled state utility’s biggest issues. Transnet is set to sign maintenance contracts with Toshiba, Wabtec and Alstom, with Transnet CEO Portia Derby saying that the latter two companies are set to resubmit offers on the cost side. Derby said that an original Equipment Manufacturer will be crucial in returning to service locomotives on the Sishen-Saldanha line. [Business Day]

• No Ace up his sleeve: Former ANC secretary-general Ace Magashule has been suspended from the party. Magashule failed to submit a response after he was given seven days to make representations on why he should not be suspended from the party. He was found guilty of bringing the party into disrepute following his attempt to suspend President Cyril Ramaphosa in 2021. [News24]

• Markets: The South African rand extended gains on Monday, building from the previous week, as investor sentiment towards Africa’s most industrialised economy improved. Kieran Siney of ETM Analytics said that investors are pleased with the reduced tensions between South Africa and the West following allegations that South Africa supplied arms to Russia. On Tuesday (13 June), the rand was trading at R18.52/$, R19.98/€, and R23.22/£. Brent crude is trading at $72.20 a barrel. [Nasdaq]