R3.6 billion in pension savings down the drain, and major property problem in Cape Town
The South African rand remained relatively stable during most of Tuesday’s trading session as investors awaited upcoming economic data for insights into the health of Africa’s largest economy.
The rand was trading at 17.1925 against the dollar, which is about 0.2% weaker than its closing value on Monday.
Additionally, gold prices declined for the fourth consecutive session, pressured by a stronger dollar and reduced expectations of a US interest rate cut next month.
Like other risk-sensitive currencies, the rand often responds to global factors such as US monetary policy and economic data.
Domestic traders are closely watching the October consumer inflation figures and September retail sales data, set to be released on Wednesday, as well as the central bank’s interest rate decision on Thursday.
On Wednesday, 19 November, the rand was trading at R17.18 to the dollar, R22.57 to the pound and R19.90 to the euro. Oil was trading slightly lower at $64.68 a barrel.
5 important things happening in South Africa today
Billions in pensions down the drain: The Government Employees Pension Fund reported R3.6 billion in investment write-offs for bad investments in the 2024/25 financial year. Despite this, the fund, the largest in the country at R2.69 trillion, saw its investment portfolio grow by 13.1%. Net profit surged 89% to R512 million. [News24]
Cape Town’s property problem: Cape Town faces a severe rental shortage, with prices beyond the reach of the average South African. The median household income is just over R14,000 per month, making homeownership unaffordable. Contributing factors include population growth outpacing new housing, foreign buyers outbidding locals, and the “Airbnb effect,” which further reduces long-term rental availability. [Moneyweb]
Say goodbye to spam calls: South Africa’s national opt-out registry for unwanted marketing calls is advancing, as proposed by Minister Parks Tau in December 2024, to help South Africans frustrated by unsolicited marketing calls. The National Consumer Commission will oversee the registry, helping to manage direct marketers effectively. [MyBroadband]
Former Minister charged with corruption: Former Public Enterprises, Finance, and Home Affairs Minister and current co-chair of Parliament’s Joint Standing Committee on Defence, Dr Malusi Gigaba, has been formally charged with corruption. [Newsday]
South Africa hunting for investments: The government is developing an economic diplomacy strategy to boost investment flows, expand regional value chains, and safeguard the domestic economy against geopolitical volatility. Minister of International Relations & Co-operation Ronald Lamola stated that the strategy focuses on attracting investment and growing sectors like critical minerals and manufacturing. [Business Day]
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