5 important things happening in South Africa today
Here’s what is happening in and affecting South Africa today:
Call of caution: Finance Minister Enoch Godongwana says it is premature for South Africa to enter the discourse about de-dollarisation and creating an alternative to the cross-border payments system Swift. Godongwana underlined that South Africa’s trade is still largely skewed towards the West, and the country needs to be cautious. He noted that 75% of South Africa’s foreign liabilities are currently linked to the US and Europe. [Mail & Guardian]
Load shedding donation: Ten memoranda of understanding have been signed between the South African and Chinese governments, including donating emergency energy equipment worth R170 million. This includes generators, gasoline and power (electric) vehicles, solar PV batteries and inverters. Ramaphosa noted that these resources would be targeted towards hospitals, clinics and correctional facilities, further reducing the demand burden on Eskom. [BusinessTech]
Transnet lifeline: The New Development Bank (NDB), founded by the BRICS bloc of nations, is considering granting an R18 billion loan to Transnet to upgrade the utility’s locomotives and help its rail corridors run at full capacity. The bank aims to complete the transaction by the end of the year to expand its $5.6 billion (R105.5 billion) portfolio in South Africa. [Daily Investor]
Construction mafia hotline: Public Works and Infrastructure Minister Sihle Zikalala said law enforcement agencies were prioritising the war against extortion, hijacking and disruption of construction sites. He added that the government is establishing a call centre for speedy reporting of construction disruptions, and this will support the assigned law enforcement units to this priority crime. [News24]
Markets: South Africa’s rand jumped 1% on Tuesday after some risk appetite returned to markets due to falling US Treasury yields, as the country kicked off the first day of the BRICS summit of emerging economies in Johannesburg. On Wednesday (23 August), the rand was trading at R18.75/USD, R20.37/EUR and R23.92/GBP. Oil is trading at $84.10 a barrel. (Reuters)
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