Business

5 important things happening in South Africa today

Staff Writer

 ·26 Jul 2023

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

• Green light for SAA privatisation: The Competition Tribunal has conditionally approved the proposed merger of Takatso Aviation and South African Airways. Takatso will be acquiring a 51% stake in SAA from the government, taking one of the government’s biggest privatisation drives a step closer to completion. [eNCA]

• A move to change ICC arrest laws: The director-general of the Department of International Relations, Zane Dangor, announced that the law on ICC arrest warrants would be amended. This will be done by ‘domesticating article 98,’ which means that in South Africa’s domestic legislation, visiting heads of state and officials will be granted immunity. This comes after the awkward position South Africa found itself in regarding Russian president Vladimir Putin’s planned visit to the country. [702]

• Mining losing billions: Copper cable theft on the coal rail line has spread to the iron ore export line, adding to the woes of the mining industry that has caused Kumba Iron Ore to bleed R1 billion monthly in the first six months of the year. Kumba, SA’s largest producer and exporter of iron ore, said on Tuesday (25 July) it lost about R6 billion in earnings so far this year, translating to losses for the fiscus. [Business Day]

• Ticking time bomb: The latest report by the United Nations Development Programme (UNDP) noted that joblessness among young people is a serious warning sign for economic growth and social cohesion while putting pressure on public resources. Deputy President Paul Mashatile agreed with the report and said that youth unemployment is a “ticking time bomb” that threatens the social and political stability of South Africa. [EWN]

• Markets: The rand enjoyed some tailwinds on Tuesday (25 July) as the market pared bets on an extended global rate-hike cycle after some weak Eurozone and UK PMI data, said Danny Greeff, co-head of Africa at ETM Analytics. Rising gold and coal prices provided additional support, he added. The rand has gained more than 5% since the start of July. On Wednesday (26 July), the rand was trading at R17.57/$, R19.42/€, and R22.65/£. Brent crude is trading at $83.11 a barrel. [Reuters]