Major state-owned food producer cutting over 2,000 jobs, and UK overcharging South Africa by billions
The rand strengthened slightly against the dollar on Wednesday, trading at 17.66, which is approximately 0.2% higher than Tuesday’s closing value.
This increase followed a weak US Purchasing Managers’ Index (PMI) survey, as global markets anticipated the release of important US data for insights into the Federal Reserve’s interest rate plans.
A recent survey revealed that South African business confidence decreased by one point in the third quarter compared to the previous three months. This decline is attributed to significant US tariffs on the country’s exports.
Meanwhile, the dollar weakened by about 0.3% against a basket of other currencies, as investors looked ahead to the August nonfarm payrolls report slated for release on Friday.
This report follows news on job openings released on Wednesday and private payroll data due on Thursday.
The upcoming data is expected to provide insights into US economic strength, which will play a crucial role in the Fed’s decisions regarding interest rates.
On Thursday, 4 September, the rand was trading at R17.71 to the dollar, R23.78 to the pound and R20.63 to the euro. Oil was trading slightly lower at $67.15 a barrel.
Here are five other important things happening in and affecting South Africa today:
Daybreak Foods to chop 2,200 jobs: Daybreak Foods’ brutal business rescue plan is the only chance the Public Investment Corporation has to salvage something from a bad situation. The troubled poultry producer will cut more than 2,200 jobs, nearly 80% of its workforce, as business rescue practitioner Tebogo Maoto implements a survival plan to keep the company afloat. [Daily Maverick]
UK overcharging South Africa: South African exports to the UK are incurring high tariffs despite a trade deal for tariff-free access. In 2024, £114 million in vehicles (about R2.7 billion), £40 million in wine, and £18 million in fruits paid unnecessary tariffs, costing South Africa’s economy billions. The UK is not certain why this is happening, but officials from both countries are looking into the issue. [Business Day]
Western Cape launches NHI court challenge: The Western Cape Government is challenging the NHI Act in the Constitutional Court, claiming it was enacted without sufficient public input and should be declared unconstitutional. [EWN]
Eskom punishing South Africans for its mistakes: Over the past twenty years, Eskom has incurred R1.84 trillion in excess costs for electricity production due to mismanagement, corruption, and an inflated workforce. This has led to soaring electricity prices in South Africa, unfairly penalising consumers. Local businesses and households should be paying 80% less for electricity. [MyBroadband]
One of South Africa’s oldest towns is collapsing: Winburg, the oldest Free State town, is struggling with severe service failures. Its 15,000 residents face sewage spills, ongoing water and electricity outages, and unfinished projects, leaving them feeling forgotten. [Newsday]
Loading ...