5 important things happening in South Africa today

·4 Aug 2023

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

Driving licence extension: There is a good chance the validity period of the new driving licence card for South African motorists will be increased from five to eight years. The decision is, however, still subject to cabinet approval. Minister of Transport Sindisiwe Chikunga said the decision to increase the validity period was based on an investigation commissioned by former transport minister Fikile Mbalula to determine international trends in this regard. [MoneyWeb]

Lady R report finalised: The Presidency said that a report on the docking of a Russian cargo vessel, the Lady R, in South African waters would be completed and handed to President Cyril Ramaphosa by the end of Friday (4 August). Presidential spokesperson Vincent Magwenya said that once the president had studied its contents, consideration would be given to what could be made public. [EWN]

Chicken price hike: A 12-month suspension on anti-dumping duties for poultry from five countries has ended, which has raised warnings that South African consumers should brace for massive price hikes for the protein. Minister of Trade, Industry and Competition Ebrahim Patel issued the notice on Tuesday (1 August) and approved duties which would be as high as 265% on imports from Brazil (additional to an existing 62% tariff), 67.4% on Denmark, 85.8% on Spain, 96.9% on Poland and 158.4% on Ireland. [News24]

SA debt crisis: South Africa is heading for a fiscal disaster as the government’s rising debt burden is reaching unsustainable levels, and poor economic policy is resulting in stagnant economic growth. Economists noted that the country’s debt servicing costs have increased to roughly R1 billion a day, which Sean Segar of Nedgroup Investments calculates at $1 per day per South African citizen. [Daily Investor]

Markets: The South African rand weakened in early trade on Thursday (3 August) after slumping almost 5% this week amid concerns over global economic growth and a United States credit rating downgrade. On Friday (4 August), the rand was trading at R18.67/$, R20.45/€, and R23.78/£. Brent crude is trading at $85.27 a barrel. [Reuters]

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