Top retailer in hot water for closing hundreds of stores, and Eskom lost R910 million building 366 flats that are now completely empty
The South African rand showed resilience against the US Dollar last week, improving from R16.14/$ on Monday, 31 August, to approximately R15.99/$ by Thursday, 3 September.
This strength was supported by local corporate earnings, including Eskom’s first profit in years, as well as positive global risk sentiment.
However, the gains were limited by rising crude oil prices, which surpassed $90 per barrel, raising inflation concerns and expectations of tighter monetary policy from the Federal Reserve.
On Tuesday, 8 September, Stats SA will release the Q2 2026 GDP figures. Economists at Nedbank predict a 0.2% contraction quarter-on-quarter, driven by declines in the mining and manufacturing sectors.
A disappointing GDP outcome could negatively affect the rand. Additionally, high global oil prices present further inflation risks, complicating the South African Reserve Bank’s monetary policy and increasing the demand for the US Dollar.
Nedbank noted that for the rand to maintain its support, significant progress in structural reforms is necessary, especially in light of global trade risks.
On Monday, 7 September 2026, the rand was trading at R15.95 to the dollar, R21.56 to the pound, and R18.52 to the euro. Gold is trading at $4,398.28, while oil prices were at $97.37 a barrel.
5 important things happening today
Top retailer in hot water: The Congress of South African Trade Unions (COSATU) has warned The Foschini Group (TFG) to consider the impact of its store closures. This followed an announcement by TFG earlier this year that it plans to close down hundreds of stores over the next few years. [Newsday]
Eskom built hundreds of flats that are standing completely empty: Eskom’s Ogies Housing Project cost the utility R910 million, with the 366 flats now standing empty. [Daily Investor]
Crackdown on Netflix, WhatsApp, MTN, and more: The Independent Communications Authority of South Africa (Icasa) has warned over-the-top (OTT) service providers, including the multinational Netflix and WhatsApp, as well as the country’s major telecommunications companies MTN and Vodacom, about the pricing of their services. [Business Day]
Most expensive power station in history still incomplete: After 19 years, Eskom’s two largest coal-fired power stations, Kusile and Medupi, remain technically incomplete, lacking critical systems and requiring significant remedial work. Originally designed to solve the country’s load-shedding crisis, construction of both plants was plagued by delays, with an estimated combined cost of over R410 billion borne by South African taxpayers. [MyBroadband]
Transnet corruption exposed: Transnet Port Terminals employees have accused executives of procurement irregularities involving over R900 million, leading to substantial losses. The allegations were submitted to the Hawks and supported by documents. [Mail & Guardian]
Loading ...