Business

5 important things happening in South Africa today

Staff Writer

 ·13 Jul 2017

Here’s what is happening in and affecting South Africa today:

• German software group SAP has suspended its South African management team, pending an investigation into allegations it was involved with the Gupta family and state capture. The investigation will be conducted by an international law firm, and will look at whether Gupta-linked company, CAD House, received R100 million in kickbacks from SAP from helping secure contracts with Transnet.

• Transnet has also announced that it has suspended several officials after external auditors flagged irregularities in the group’s procurement processes. Transnet said that the ‘irregularities’ are no longer taking place and that legal action has been taken against those implicated. Power utility Eskom was flagged by external auditors on similar grounds, pointing to serious concerns over the governance of state companies in South Africa.

• A new index shows that consumer confidence in South Africa is low, but even more so among the country’s high-income earners, with new taxes and a slowdown of skilled employment positions opening up in the country. High-income earners have historically been the most optimistic, but have seen a huge decline in the latest index, dropping from 23 points to just 8.

• Deputy president Cyril Ramaphosa was on the offensive at the SACP’s conference on Wednesday, talking up the fight against state capture, and promising action against those who partook in it. Ramaphosa was addressing SACP members in a spot president Jacob Zuma was barred from attending. The deputy president also implored the SACP not to break away from the tripartite alliance – however, delegates were not receptive to his message of unity.

• South Africa’s rand and bonds raced to their firmest levels in a week on Wednesday as investors cashed in on the dollar’s recent rally and saw an improved outlook for the economy despite recession and political uncertainty. On Thursday the rand was trading at R13.22 to the dollar, R17.06 to the pound and R15.13 to the euro.