Ramaphosa in hot water, and bad news for anyone with insurance in South Africa
The rand strengthened on Wednesday, following a slight increase in headline consumer inflation last month and a rise in retail sales, while global uncertainty related to the Middle East conflict kept markets cautious.
The rand was trading at 16.44 against the dollar, up approximately 0.53% from its previous close.
According to statistics agency data released on Wednesday, South Africa’s headline consumer inflation in March rose to 3.1% year-on-year, up from 3.0% in February, which was in line with economists’ estimates.
Analysts indicated that the inflation rate is expected to rise significantly in April, as fuel price hikes triggered by the US-Israeli conflict over Iran will affect consumer prices.
Additionally, South Africa’s statistics agency reported that retail sales increased by 1.6% year-on-year in February, a decrease from a revised 4.4% increase in January.
The US dollar remained stable, trading near a one-week high as uncertainty in the Middle East continued, despite US President Donald Trump extending a ceasefire with Iran indefinitely.
Gold prices saw an increase, buoyed by safe-haven demand following Trump’s announcement, though it remained uncertain whether Iran or US ally Israel would agree to continue the ceasefire.
On the Johannesburg Stock Exchange, the Top-40 index was down approximately 0.47%.
Meanwhile, South Africa’s benchmark government bond maturing in 2035 weakened, with its yield rising 8 basis points to 8.52%.
As of Thursday, 23 April, the rand is trading at R16.52 to the dollar, R22.29 to the pound, and R19.34 to the euro. Gold is currently valued at $4,706.02 per ounce, while oil prices have risen to $103 per barrel.
5 important things happening in South Africa today
Ramaphosa in hot water: President Cyril Ramaphosa has been put in a tough position and must make a critical decision regarding National Police Commissioner Fannie Masemola, who is involved in a criminal case linked to a police scandal. [Daily Maverick]
Pressure on insurance premiums: Rising fuel prices are increasing insurance costs in South Africa, with industry experts warning that the shock is affecting claims and premium structures. [Business Day]
No winter load shedding: Power utility Eskom says that South Africa is entering the winter months with a stable power system, with no hint of load shedding or national interruptions on the cards. [BusinessTech]
Capitec to offer internet: Capitec revealed in its annual results on Wednesday that it wants to offer home broadband connectivity through partnerships as one of its strategic initiatives. [MyBroadband]
Doctors are leaving for Ireland: Many South African doctors are leaving for Ireland because of safety and security, better opportunities, and superior training pathways. [Daily Investor]
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