5 Things

5 important things happening in South Africa today

Seth Thorne

 ·24 Apr 2024

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

• Doubts over interest rate cuts: Recent market expectations, influenced by ongoing uncertainties about the timing for inflation to meet the central bank’s target midpoint and about global disinflation, suggest that in 2024, South Africa’s policy rate might either stay the same or continue near its 14-year peak at 8.25%. This is according to the Reserve Bank’s April monetary policy review released on Tuesday, which raises questions regarding the likelihood of the rate dropping below 5% at all this year. [Business Day]

• Government wants more business employee ownership: Government is calling on more private businesses to embrace the Employee Shared Ownership Programmes, with President Ramaphosa saying that “giving workers a seat at the table where strategic corporate decisions are made fosters good morale and innovation and also builds a resilient economy.” [SA News]

• Developer halts project after business forum ultimatum: The future of 150 workers is uncertain after the Mzansi Business Forum reportedly demanded a Gauteng businessman, Rick Goncalves, to hire their members or cease his project. Goncalves, who is developing a shopping center in Rondebult, east of Johannesburg, had to halt construction temporarily due to this ultimatum. [News24]

• Questions remain over port regulator’s CEO: Eight months after the Ports Regulator of South Africa’s board terminated its CEO’s contract due to alleged performance issues, breaches of the Public Finance Management Act, and staff bullying, both the regulator and the Department of Transport have not clarified her current status. Despite this, she remains in her position, with details of her situation largely kept from both the public and the shipping industry. [News24]

• Markets: The rand reversed some of its losses on Tuesday as global investor concerns over rising tensions in the Middle East relatively receded. On Wednesday (24 April), the rand was trading at R19.12 to the dollar, R23.81 to the pound, and R20.53 to the euro. Oil is trading at $88.49 a barrel. [Reuters]