Business

5 important things happening in South Africa today

Seth Thorne

 ·16 Jan 2024

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

• Midyear interest rate cut expected:  Bank of America (BofA) predicts that the South African Reserve Bank will cut interest rates in July due to a decrease in global oil prices and a more relaxed global environment leading to lower domestic inflation. BofA, however, cautions that the South African economy may face a weaker fiscal outlook due to the anticipated Transnet bailout and policy uncertainties resulting from the governing party’s reduced support. [BusinessLive]

• Train collision chaos:  The export coal line to Richard’s Bay in South Africa has been closed on Sunday due to a collision between two coal freight trains. The accident is believed to be due to a communication failure caused by the lack of a digitised train management system. The collision occurred after a shift change, suggesting miscommunication may have played a role. This is a setback for the government and businesses, who have been trying to improve the country’s logistics sector. [BusinessTech]

• Coast shipping traffic surges by 35%: Shipping traffic around the Cape has shot up by 35% since a rebel group started attacking cargo ships in the Red Sea in November, the South African Maritime Safety Authority confirmed on Monday. The attacks have led to many cargo vessels rerouting their trips around Africa instead of making their way through the Red Sea. [Times Live]

• Cape Town construction mafia threats: The City of Cape Town continues to battle with extortion-related crimes in the construction industry. Officials have blacklisted several companies on its database allegedly linked to known gangsters. However, due to threats, these officials have been relocated to safe houses. [eNCA]

• Markets: The value of the dollar increased on Tuesday as investors reduced their expectations of immediate rate cuts from the U.S. Federal Reserve. On Tuesday (16 January), the rand was trading at R18.79 to the dollar, R23.81 to the pound, and R20.49 to the euro. Oil is trading at $78.27 a barrel. [Reuters]