Big legal blow to Spur, and Andre de Ruyter under fire once again
The South African rand declined on Wednesday as the dollar experienced a tentative rebound, raising concerns about the independence of the U.S. Federal Reserve.
The rand was trading at 17.72 against the dollar, approximately 0.4% weaker than the previous day’s close.
Meanwhile, the dollar was about 0.2% stronger against a basket of currencies, which diminished the appeal of the risk-sensitive rand.
The currency faced pressure throughout most of Tuesday’s session while markets awaited insights from local economic data.
On the Johannesburg Stock Exchange, the Top-40 index was down by 0.4%. Additionally, South Africa’s benchmark 2035 government bond weakened, with the yield rising by one basis point to 9.60%.
On Thursday, 28 August, the rand was trading at R17.67 to the dollar, R23.87 to the pound and R20.57 to the euro. Oil was trading slightly lower at $67.55 a barrel.
Here are five other important things happening in and affecting South Africa today:
Legal blow to Spur: Restaurant group Spur announced that an arbitrator has partly ruled against it in a legal dispute with GPS Food Group RSA, which has been ongoing for six years. GPS claims an “oral agreement” was made to develop a rib-processing facility for product supply. Spur plans to appeal the ruling within 30 days. Total claims against Spur, including alleged losses, could reach R262.8 million. [News24]
Andre de Ruyter under fire: Eskom board chair Mteto Nyati criticised André de Ruyter’s performance as CEO in a Twitter/X post, questioning why current CEO Dan Marokane isn’t receiving more praise. This follows comments from electricity minister Kgosientsho Ramokgopa, who believes the utility erred in appointing De Ruyter in December 2019. [MyBroadband]
GNU disappointment: The Government of National Unity (GNU) has reportedly achieved only 2% of its goals since forming last year, according to Dr Corné Mulder of Freedom Front Plus (FF+). He shared this after attending a gathering where National Assembly Speaker Thoko Didiza discussed the coalition’s progress. [Newsday]
Sapref refinery deal for R1 criticised: The Sapref refinery was sold to the Central Energy Fund for R1, freeing Shell and BP from past liabilities. Located in low-income neighbourhoods south of Durban, the refinery has harmed local communities for decades, and the sale was done without any consultation or reparations to the communities. [Daily Maverick]
Steel companies gear up to fight government: Companies across South Africa’s steel value chain are gearing up to submit responses to a preliminary determination by the International Trade Commission of South Africa (Itac) that proposes the implementation of sweeping tariffs on imported steel products. South Africa’s International Trade Commission (Itac) has proposed increased tariffs on imported steel products, changes that could add R1.54 billion to the annual tariff bill. [Engineering News]
Loading ...