5 important things happening in South Africa today
Here’s what is happening in and affecting South Africa today:
Big shake-up for SOCs: The National State Enterprises Bill, which sets out the legal basis for a state-holding company – to be known as the State Asset Management Company – into which state-owned companies will migrate and be converted to subsidiaries, was published for comment on Friday. Most state companies are in dire financial straits and lack the management expertise needed. They have also been subject to ongoing political interference by line ministers, often to direct tenders and well-paid jobs to political cronies. [News24]
Acting Eskom CEO in hot water: New Eskom acting CEO Calib Cassim’s head is on the block for his alleged involvement in the controversial Fidelity security contract. Fidelity was granted a three-month contract at the behest of Eskom’s former head of security, Karen Pillay. The utility has since suspended her. Pillay wrote a letter to then Eskom CFO Calib Cassim, requesting permission to deviate from the utility’s payment policy. The letter showed that Oberholzer and De Rutyer supported the deviation request by Pillay before Cassim approved it. [Daily Investor]
Good news at Kusile: On Sunday, electricity minister Ramokgopa announced the return of generating unit 4 at the Kusile Power Station, adding 800 megawatts to the grid. Ramokgopa said there was more good news from Kusile in that unit 3 would be returned to full service a month earlier than expected. “They have ramped up the rate at which they are doing the work, so we are able to say to the country that we have been able to shave a month on the return of this unit. So the expectation is that we should be able to return unit 3 by the 14th of October. The same is applicable to unit 1,” the minister said. [EWN]
Naspers CEO steps down: Naspers and Prosus have announced that Bob van Dijk has stepped down from his role as CEO and his positions on the boards of both companies following a mutual agreement. Van Dijk’s leave is effective today, 18 September, but he has agreed to assist with the transition on a consultancy basis until 30 September 2024. [BusinessTech]
Markets: South Africa’s rand edged lower against the dollar on Friday, weighed down by a worsening power crisis, ahead of local inflation figures and an interest rate decision this week. While state power utility Eskom reduced the intensity of power cuts for the weekend, the possibility of higher levels of power cuts than the “Stage 6” experienced by South Africans for the better part of the week has fuelled investor concerns. On Monday (18 September), the rand was trading at R18.95/USD, R20.22/EUR and R23.49/GBP. Oil is trading at $94.46 a barrel. [Reuters]
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