12 major companies forced to close in South Africa, and attempt to block NHI court challenges
The rand continued to strengthen on Wednesday, supported by a weaker dollar following the release of a domestic business confidence index and retail sales figures.
The rand was trading at 17.54 against the dollar, approximately 0.4% stronger than its previous close, after having appreciated more than 1% on Tuesday.
The South African Chamber of Commerce and Industry reported an increase in business confidence in July, attributed to higher new vehicle sales, rising manufacturing output, strong prices for precious metals, and well-controlled inflation.
Additionally, data from Statistics South Africa revealed that retail sales rose by 1.6% year-on-year in June, following a revised increase of 4.3% in May.
On Thursday, 14 August, the rand was trading at R17.52 to the dollar, R23.79 to the pound and R20.51 to the euro. Oil was trading slightly lower at $65.90 a barrel.
Here are five other important things happening in and affecting South Africa today:
12 company closures: According to the trade minister, declining domestic sales of locally made cars, rising imports, and low local content have led to 12 company closures and over 4,000 job losses in South Africa’s motor industry in the past two years. [CNBC Africa]
NHI challenges: Health Minister Aaron Motsoaledi has launched a broadside against the parties challenging the NHI Act, asking the court to consolidate and suspend their cases until the legal disputes regarding the president’s approval are settled. HFA CEO Thoneshan Naidoo warned that halting challenges to the act would enable the minister to advance NHI, causing irreparable harm to South Africa. [Business Day]
Own goals: The Western Cape’s apple and pear export industry estimates that logistical delays at the Port of Cape Town have cost around R1 billion. Industry leaders are calling for the fast-tracking of the port’s privatisation to prevent further losses. [IOL]
Blue light bill: South African taxpayers have spent over R1.4 billion on very important person (VIP) protection services since the 2020/21 financial year. Most of this has been allocated to protecting members of the executive. However, R170 million has been spent on members of the Judiciary, Legislature, and ad-hoc VIPs. [Newsday]
Cryptocurrency regulations: Finance minister Enoch Godongwana noted that he will not draft a comprehensive cryptocurrency exchange control exemption framework. Instead, the SARB will release a framework later this year for cross-border crypto asset transfers. This follows a May ruling by the Pretoria High Court declaring that South Africa’s outdated exchange control rules do not apply to cryptocurrencies and need urgent reform. [MyBroadband]
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