Government

5 important things happening in South Africa today

Staff Writer

 ·20 Oct 2023

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

• Active shareholding: Public Enterprises minister Pravin Gordhan has shrugged off criticism of his tenure at the department, saying that he is an “active shareholder” in the country’s failed state companies and has been making difficult decisions to reform them. In recent weeks, the minister has been under fire for the dismal state of government-owned companies, hit with claims of political interference and a loss of confidence. He said that vested interests are attempting to engage in State Capture 2.0 at the entities, and would not be deterred from reforms. [Mail & Guardian]

• Transnet asks for Eskom treatment: Transnet has asked that the government take on a portion of its historical debt, similar to the R245 billion debt relief offered to ailing power utility Eskom, as the state logistics company continues to struggle under a R130 billion debt pile and other operational and financial challenges. [BusinessDay]

• Real culprit for Joburg’s cash problems: Joburg is cutting off water and electricity in poor areas and nursing homes and enforcing outstanding payments at roadblocks to recover billions owed in rates and taxes, while government departments owe hundreds of millions in unpaid water bills. According to a report tabled at the city council, government departments and state-owned enterprises (SOEs) owed Johannesburg Water R636 million by the end of 2022. [Daily Maverick]

• Regulator backs off medical aids: The Council for Medical Schemes (CMS) has withdrawn a directive ordering five of South Africa’s most prominent medical schemes to either withdraw their 2024 price and benefit changes or to add a disclaimer saying they haven’t yet received regulatory approval. The CMS said the providers it castigated last week for hiking prices before receiving its go-ahead have since added disclaimers. [News24]

• Markets: The South African rand was weaker in early trade on Thursday on soaring U.S. Treasury yields ahead of a speech by Federal Reserve Chair Jerome Powell. “The rate hike concerns and heightened Middle East tensions are driving the dollar stronger and dampening risk sentiment,” said Andre Cilliers, currency strategist at TreasuryONE. He added that poor local retail sales data also did not help the rand’s cause. On Friday (20 October), the rand was trading at R19.03 to the dollar, R23.07 to the pound and R20.04 to the euro. Oil is trading at $91.10 a barrel. [Reuters]