South Africa’s largest pension fund manager in crisis, and concerns about Starlink rival launching in South Africa
The rand continued to lose value on Friday, 24 July, dropping close to the 17-per-dollar level for the first time since April.
The change came after the Reserve Bank’s unexpected decision to hold interest rates, after many experts expected a hike.
The rand traded at 16.84 against the dollar on Friday, roughly 0.1% down from its previous close.
Rand Swiss market analyst, Shaun Murison, said, “The rand is being hit from all angles at the moment, unfortunately.”
He said the rand was also struggling due to broader risk-aversion moods stemming from the conflict in the Middle East.
He said the new tariffs against South Africa were another concern for the country, after the U.S. imposed new tariffs on 60 trading partners, including South Africa.
South Africa’s benchmark 2035 government bond strengthened on Friday, with the yield falling 10.5 basis points to 8.74%.
ETM Analytics said, “The future remains uncertain, but the market reaction suggests that policy credibility, real-rate compensation and structural reform must remain mutually reinforcing if rand volatility is to be contained.”
5 important things happening today
Crisis at South Africa’s largest pension fund manager: Finance Minister Enoch Godongwana said on Friday he would appoint a new board for the Public Investment Corporation after a series of board resignations. [Newsday]
Concerns about Starlink rival launching in South Africa: Top financial analysts in South Africa have questioned Amazon Leo’s capacity to launch its services to local customers compared to its larger rival, SpaceX and Starlink. [MyBroadband]
South Africa’s oldest company is disappearing in front of everyone’s eyes: The South African Post Office is disappearing from the lives of people across the country as it closes branches and fails to provide basic services. [DailyInvestor]
The most dangerous time of day to be on South Africa’s roads: New data shows that 03h00 is the most dangerous time to be on South Africa’s roads, with drivers facing almost double the risk of being involved in a collision compared to travelling during the day. [BusinessTech]
Embattled IDAC head Andrea Johnson seeks immediate release from office: The head of the Investigating Directorate Against Corruption has asked to be immediately released from her position, following her testimony at the Madlanga Commission. [BusinessDay]
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