Broken state company pays execs R37 million, and BEE billionaires feasting at taxpayers’ expense
The South African rand firmed on Friday, buoyed by a weaker dollar, as weak US jobs data dampened expectations for a near-term Federal Reserve rate hike.
The rand traded at R16.22 against the dollar later in the day, up about 0.3% from its previous close.
The US dollar was down against a basket of currencies after a tepid US jobs report, breaking its streak of stronger trade.
“The rand strengthened modestly this week, supported primarily by a weaker US dollar after softer-than-expected US jobs data shifted the expected timing of the Fed’s interest rate hike towards the end of the year,” Nedbank economists said in a note.
Like other emerging-market currencies, the rand tends to take direction from global factors, including US economic data and geopolitical developments.
Domestic investors focused on the June S&P Global whole-economy PMI, which showed South Africa’s private sector returned to modest growth as easing price pressures helped offset a second consecutive monthly decline in output and new orders.
A manufacturing PMI on Wednesday showed that South African factory sentiment deteriorated in June, though lower oil prices boosted confidence about future business conditions.
Oil prices have crashed to around $72 a barrel as market sentiment placed hopes in a long-term negotiated end to the war between the US and Iran.
Oil flows through the Strait of Hormuz have increased following the signing of a memorandum of understanding to end the conflict.
However, the risk and uncertainty have not completely dwindled, with tensions still present.
5 important things happening today
BEE feeding trough: Econometrix chief economist Dr Azar Jammine says parts of South Africa’s BEE policy have been used to facilitate cronyism and corruption, with state procurement being the main feeding ground. Almost every government contract or tender requires middlemen to fulfil, making a small group of individuals and entities extremely wealthy. [Daily Investor]
Payday at the RAF: The Road Accident Fund, which has been technically insolvent for some time, paid its top management team R37 million in the 2025 financial year. The entity’s personnel expenditure over the last financial year was R2.468 billion, constituting 62% of total expenditure. This cost included basic salaries of R1.786 billion, which equates to an average basic salary of R742,000 per employee. [Newsday]
DStv pay cut: Former MultiChoice CEO Calvo Mawela took a R14.6 million pay cut between 2024 and 2025 as the DStv owner began struggling financially amid a number of market pressures. Mawela’s pay was slashed as the group revealed wide-ranging challenges, including a drop in its total subscriber base. [MyBroadband]
Big franchises in the crosshairs: The Competition Commission is preparing to investigate the country’s franchise industry, which could place the business practices of some of South Africa’s biggest brands under intense scrutiny. Companies in the crosshairs include major names such as Chicken Licken, KFC, Pick n Pay, Spar, Midas, Sorbet, Italtile Retail and CTM. [BusinessTech]
Factory takeover: China’s Chery formally took over Nissan’s car manufacturing plant in Rosslyn on Friday under a deal that was announced in January, and executives said the company will spend millions of dollars upgrading and adding machinery ahead of starting vehicle production in South Africa in mid-2027. Chery has committed to retaining all 692 existing employees at the plant. [Reuters]
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