Cape Town in deep trouble, and warning to people shopping on Temu
The rand declined on Thursday after the central bank maintained its main lending rate at its first rate decision of the year.
The rand traded at 15.86 against the dollar, down roughly 0.5% from Wednesday’s close, yet it remained near its highest level in 3 years.
Meanwhile, the US dollar gained 0.4% against a basket of currencies.
The South African Reserve Bank held its main lending rate steady at 6.75% on Thursday, citing a desire to see inflation expectations decline further and mentioning potential price pressures such as electricity tariffs.
Eighteen of 26 analysts had anticipated the bank would keep the rate unchanged, while eight expected a 25-basis-point cut to 6.50%.
December’s producer inflation in South Africa was 2.9% year-on-year, consistent with November, according to data released earlier Thursday.
On the Johannesburg Stock Exchange, the Top-40 index rose by 0.2%.
As of Friday, January 30, the rand is trading at R15.80 to the dollar, R21.75 to the pound, and R18.86 to the euro. Gold is currently valued at $5,232.57 per ounce, while oil prices have risen to $69.74 per barrel.
5 important things happening in South Africa today
Cape Town’s water crisis continues: The City of Cape Town has alerted residents to conserve water as dam levels drop and usage increases. Currently, dam storage levels are at 62.2%, while daily water consumption has surged, reaching 1,062 million litres per day (MLD). Residents are encouraged to minimise unnecessary water use at home, in industrial settings, agriculture, and workplaces. [eNCA]
Temu lies to South Africans: Temu, a Chinese e-commerce platform, is sending fake shipping notifications to South Africans to encourage purchases on its mobile app. Users are prompted to spin a wheel in a mini-game to win rewards like free items or discounts. However, the outcomes are not random; users always receive the same rewards as indicated in the initial notification. Temu admits in the app’s rules that these mini-games are for illustrative purposes only and that all participants will receive the best result. [Mybroadband]
Eskom lowers tariffs: On January 29, energy regulator Nersa approved Eskom’s application to reduce the tariff it charges the Glencore-Merafe and Samancor smelters from 136 cents per kilowatt-hour (c/kWh) to 87 c/kWh. This discount will apply from January 1 to December 31 of this year and is exclusive to these two Eskom customers. Nersa will consider applications from other smelters facing similar financial difficulties once they are submitted. [Moneyweb]
CEO charged with money laundering: Themba Mathibe, CEO of the Johannesburg Development Agency (JDA) and acting CEO of the Johannesburg Social Housing Company (JOSHCO), was arrested on money laundering charges. He appeared in the Alexandra Magistrate’s Court on January 28, 2026, and was granted R50,000 bail without opposition from the state. [Newsday]
Interest rates on hold: The Reserve Bank has maintained the repo rate at 6.75%, citing increased domestic risks and what seems to be a disruption in the global political order. The Bank’s decision marks the second MPC meeting since adopting the 3% inflation target and comes before the February national budget announcement, which will reveal if government spending plans align with this inflation goal. [BusinessTech]
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