Here’s what is happening in and affecting South Africa today:
- Eskom’s new leadership along with National Treasury will work together to approach banks in a bid to avert financial disaster this week. The embattled power utility needs a reported R20 billion to stay afloat, and has run out of good will in the bond market. There are worries that global finance groups may recall loans, which could force a total recall of Eskom’s R350 billion in debts.
- The JSE has warned that Steinhoff’s bonds could be suspended if the company does not publish its financial results soon. The company has R6.8 billion in bonds outstanding. According to the JSE’s rules, a company needs to publish financial statements within four months of the end of its reporting period.
- Aspen CEO Stephen Saad said it could have been Shoprite chair and former Steinhoff director Christo Wiese’s fault that the pharmaceutical company suffered a share price shock earlier this year. According to Saad, Wiese’s selling of 4 to 5 million Aspen shares following the Steinhoff fallout may have caused panic among investors.
- Social Development Minister Bathabile Dlamini will be in the hot seat today over her role in the Sassa grants crisis – if she shows up. Dlamini has been accused of purposefully orchestrating the crisis in a bid to extend contracts. She has failed to show up for meetings over the issue several times in the past.
- South Africa’s rand retreated from a two-and-a-half year high on Friday as a rally driven by a weaker dollar and optimism about the prospects for change under the new leader of theANC ran out of steam. On Monday the rand was trading at R12.10 to the dollar, R16.78 to the pound and R14.80 to the euro.