Warning about flight ticket prices in South Africa, Ekurhuleni in big trouble
At the end of last week, the risk-sensitive rand, along with stocks and government bonds, weakened as the potential for new developments in the United States’ trade deal negotiations made investors cautious heading into the weekend.
The rand was trading at R17.72 against the dollar, down 0.5% for the day. Analysts observed that the strengthening dollar could have prompted investors to adjust their positions ahead of the weekend.
This is especially true with new updates likely before the Trump administration’s tariff deadline on 1 August.
They noted that investors are hesitant to maintain significant positions due to the volatility in US decision-making.
Looking ahead to the week, local focus will shift to the South African central bank’s interest rate announcement scheduled for Thursday, 31 July.
On Monday, 28 July, the rand was trading at R17.73 to the dollar, R23.82 to the pound and R20.82 to the euro. Oil was trading slightly lower at $68.96 a barrel.
Here are five other important things happening in and affecting South Africa today:
Flight ticket price warning: FlySafair is challenging a ruling on its ownership structure, which could disrupt the airline industry. As the largest domestic carrier in South Africa, it accounts for 60% of the market and carries 130,000 daily passengers, risking soaring flight prices if grounded. [MyBroadband]
Ekurhuleni in trouble: The City of Ekurhuleni is in serious trouble, facing major governance and financial issues. It was discovered that R5 million was paid for unperformed consultancy work without an official appointment. Additionally, employees involved in an internal fraud scheme deleted municipal arrears from the city’s database, resulting in an estimated R2 billion loss. [Times Live]
A threat to South Africa’s GDP: A recent study has revealed that climate change could reduce the global economy by 40% and South Africa’s GDP by as much as 45% by the century’s end, significantly exceeding previous estimates. [Business Day]
Pilot strike continues: The pilot strike between FlySafair and the union Solidarity continues despite the airline’s new proposal. Pilots claim the offer, submitted via email, does not address crucial issues like unpredictable schedules, insufficient rest, and a lack of family time. [eNCA]
ANC’s commission of inquiry failures: KZN police commissioner Nhlanhla Mkhwanazi accused Police Minister Senzo Mchunu of disbanding the political killings task team, prompting President Cyril Ramaphosa to announce another commission of inquiry. However, despite spending over R1.5 billion on commissions since 1996, the ANC has failed to implement accountability recommendations. [News24]
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