Government

5 important things happening in South Africa today

Luke Fraser

 ·14 Jun 2023

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

• US concerns: Trade, industry & competition minister Ebrahim Patel will travel to the US in July to ensure that South Africa gets preferential access to US markets. Patel will likely speak to the office of US trade representative Katherine Tai to guarantee that South Africa remains eligible for the African Growth and Opportunity Act (Agoa), with the current trade pact expiring in 2024. There are fears that South Africa could be kicked out of the agreement due to its alleged ties with Russia. [Business Day]

• Boost for SAA sale: The sale of 51% of South African Airways (SAA) to the Takatso Consortium will likely go through as minority shareholders in the consortium have agreed to sell. As per the conditions set out by the competition commission, Global Aviation and Syranix – which co-owns LIFT – have agreed to sell their stake in the consortium to avoid decreasing competition in the field. A tribunal hearing, which will decide if the sale in SAA can go through, is expected to take place this month. [News24]

• Solar power woes: Despite shareholders investing R100 million into a solar project in Frankfort in the Free State, Eskom says that it cannot store the 3.8 MW it generates as it could collapse its entire network. Thus, another R100 million will be required to invest in lithium batteries. In April, Eskom and IPP Rural Free State went to court due to the “self-load shedding schedule’ for Frankfort, which limited the effects of power cuts for residents, with the embattled power utility ultimately winning. [EWN, MyBroadband]

• UP VC resigns: Vice-Chancellor and Principal of the University of Pretoria Tawana Kupe has resigned from his role and will leave the university at the end of July. Kupe, who joined the institution in 2019, was scheduled to leave his role in January 2024. Council chairperson Kuseni Dlamini said that it would initiate the process of finding a suitable successor for Kupe, with an interim Vice-Chancellor and Principal appointed in due course. [News24]

• Markets: The South African rand was little changed on Tuesday as the dollar slipped ahead of a Federal Reserve monetary policy meeting. The US’s consumer price index report showed the smallest annual increase in inflation in more than two years, further fuelling expectations that the Fed will pause interest rate hikes today. On Wednesday (14 June), the rand was trading at R18.62/$, R20.09/€, and R23.47/£. Brent crude is trading at $74.42 a barrel. [Nasdaq]