Good news for homeowners with rooftop solar, and pain for renters in Cape Town
The rand, along with South African stocks and government bonds, strengthened on Friday following better-than-expected foreign reserves data.
This was further supported by a weaker dollar stemming from a disappointing US jobs report.
South Africa’s net foreign reserves increased to $65.899 billion at the end of August, up from $65.143 billion in July.
Economists from Nedbank had predicted that the country’s international liquidity position would rise only to $65.2 billion.
The rand was trading at 17.55 against the dollar, which represents a roughly 1.3% increase from its previous close, helping to recover some of its recent losses.
The rand had weakened on Thursday, partly due to a stronger dollar that diminished the appeal of most emerging market currencies.
On Monday, 8 September, the rand was trading at R17.60 to the dollar, R23.75 to the pound and R20.62 to the euro. Oil was trading slightly lower at $66.27 a barrel.
Here are five other important things happening in and affecting South Africa today:
Good news for homeowners with solar: Eskom has waived the registration requirements for solar systems until the end of March 2026. The following fees will also be waived. However, the utility is considering extending this deadline. [News24]
Price pain for renters in Cape Town: Since Airbnb entered Cape Town in 2015, the average rent has surged from R6,696 to R11,285, outpacing the national average. PayProp reports that 13.7% of tenants are in debt, highlighting affordability issues. Airbnb listings have nearly doubled, contributing to reduced long-term rental availability and rising prices. [Newsday]
US tariff hit starting to show: According to Absa Corporate and Investment Bank (Absa CIB), South Africa’s exports to the US fell 18% in the second quarter, prior to the 30% tariff in August, compared to a 3% drop in shipments to other countries. [Business Day]
Transnet starting to turn: Transnet, the South African freight rail and ports company, reported a smaller loss of 1.9 billion rand ($108.18 million) for the last financial year, down from 7.3 billion rand the previous year. The company indicated progress in its turnaround program, although its auditor expressed concerns about ongoing viability. [CNBC Africa]
Vodacom should pay Makate R3.12 million: Vodacom’s decision to offer Nkosana Makate R47 million for his Please Call Me idea sparked a decade-long legal battle, far exceeding the typical R1 million (R3.12 million adjusted for inflation) compensation for similar employee contributions. [MyBroadband]
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