Government

5 important things happening in South Africa today

Luke Fraser

 ·11 Jul 2023

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

• Post Office job crisis: The South African Post Office’s (SAPO’s) business rescue proceedings will put 7,000 jobs at risk as the embattled state-owned entity plans to save R1.3 billion in annual salaries. Speaking in court, Communications Minister Mondliu Gungubele said that the entity must be saved as it plays an important role in providing grants and services in rural areas. In February, the government said that it would pay R2.4 billion to SAPO, and it has since said that R3.8 billion is set to be given in the medium-term budget policy statement in October. [Business Day]

• New bank on the way: The Abu Dhabi Sovereign wealth fund Mubadala plans to establish a banking presence in South Africa through First Abu Dhabi Bank (FAB). The bank is valued at roughly $51 billion and has a bigger market capitalisation than South Africa’s ‘big four’ banks combined. FAB’s intentions to operate in South Africa were revealed in a trademark dispute with FNB, with FAB looking for trademarks in fund investment, internet banking services, mobile banking services and more. However, the South African Reserve Bank said that the group has not yet applied for a banking license. [Business Day]

• Water outage hitting Joburg today: Despite areas of Gauteng possibly being hit with more snow, Rand Water says the 58-hour planned water outage in Johannesburg will still go ahead. The outage will start later today, 11 July at 19h00 and will last until 05h00 on Friday, 14 July. However, City of Johannesburg MMC for Environment and Infrastructure Services Jack Sekwailahas said that it could take 14 days for some areas in the city to receive water. [News24]

• ANC consequences: South African president Cyril Ramaphosa says government ministers who cannot deliver on priorities that the ANC had planned for would face severe consequences. Speaking at the ANC’s national executive committee meeting in Boksburg, Ramaphosa said that he would meet with key government officials, including ministers, deputy ministers and director-generals on an ongoing basis to determine if they are able to deliver on the ruling party’s mandates. [EWN]

• Markets: The rand was flat on Monday, at the start of a week in which local manufacturing and mining data will be released. The rand, like other emerging currencies, takes its cues from big global drivers, with Investec’s Annabel Bishop saying that the rand will continue to remain beholden to U.S. data releases. On Tuesday (11 July), the rand was trading at R18.74/$, R20.63/€, and R24.12/£. Brent crude is trading at $77.96 a barrel. [Nasdaq]