Shoprite coming after banks and their customers, and Cape Town clamps down on residents
The rand declined on Tuesday against a significantly stronger dollar, as investors anticipated important US data that could impact the Federal Reserve’s interest rate decision later this month.
The rand was trading at 17.74 against the dollar, approximately 0.6% weaker than its close on Monday.
Similar to other currencies sensitive to risk, the rand often takes cues from global factors, such as US economic policies and data, particularly when there are no major domestic economic updates.
Gold prices hit a record high on Tuesday. However, Investec’s chief economist, Annabel Bishop, pointed out that the surge in prices for South Africa’s commodity exports, such as metals and minerals, hasn’t led to a stronger rand.
This disconnect suggests underlying economic factors that are keeping the currency from benefiting fully from rising commodity values.
Meanwhile, the dollar was last seen 0.8% stronger against a basket of currencies, diminishing the appeal of most emerging market currencies.
On Wednesday, 3 September, the rand was trading at R17.72 to the dollar, R23.69 to the pound and R20.61 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:
Shoprite considering banking: Shoprite, South Africa’s largest grocery retailer, plans to enter the banking sector to take advantage of its client base and data for new revenue streams. With 1.2 billion customer visits last year, CEO Pieter Engelbrecht stated the company plans to offer banking solutions, including a zero-cost bank account that is yet to be marketed, as it moves more aggressively into financial services. [Business Day]
Cape Town clamps down on 17,000 residents: The City of Cape Town has initiated legal action against over 17,000 residents for nearly R1 billion in unpaid rates. In July 2025 alone, 50 new cases totalling R28.4 million were referred to attorneys. Overall outstanding debts for rates and services reached R7.9 billion by the end of July, with critics citing steep tariff hikes and inflation as contributing factors to the financial strain on households. [News24]
Big changes to electrical plugs in South Africa: South Africa is transitioning to a new electrical plug standard, moving away from the old triangular three-prong design. The South African Bureau of Standards (SABS) has adopted a hexagonal three-pin plug and socket compatible with the Europlug, commonly used for cellphone chargers and ungrounded electronics. [MyBroadband]
Country’s biggest energy users warn Nersa: The Energy Intensive Users Group (EIUG) is concerned that the R54 billion secret settlement between the regulator and Eskom introduces new price uncertainties that could harm businesses. The EIUG comprises South Africa’s largest industrial and mining companies, which use about 40% of the country’s electricity and employ over 650,000 people, generating 20% of South Africa’s GDP. [Engineering News]
South Africa’s deadliest stretch of road: A roughly four-kilometre stretch of the N2 highway near Cape Town International Airport has been identified as a hazardous route for drivers, with attacks leaving several severely injured. [Newsday]
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