5 important things happening in South Africa today

·15 Feb 2018

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

Following Jacob Zuma’s resignation as president on Wednesday night, deputy-president Cyril Ramaphosa automatically became acting president of the republic. However the ANC on Wednesday indicated that they would like the State of the Nation Address (SONA) to be delivered by a president and not an acting president, so it is expected that the National Assembly will hold an election before Friday evening were his appointment will be made permanent.

While media reports have been unclear on the numbers, five people are expected to appear in the Bloemfontein Magistrate’s Court today, in connection with investigations into the controversial Estina dairy farm project in Vrede. This follows confirmation by the Hawks that three people were arrested following operations at the Gupta family’s Saxonwold residence in Johannesburg on Wednesday.

Local and international eyes will be firmly fixed on government for the remainder of the week, as finance minister Malusi Gigaba is expected to deliver his budget address on 21 February. In line with other tax experts, PwC believes the majority of the estimated R30 billion in tax hikes will come from raising the value-added tax (VAT) rate, currently at 14%. However PwC said it doesn’t foresee a hike in the personal income tax rate, as it risks alienating an increasingly narrow base bears the brunt of this and that this could lead to people avoiding or evading paying tax.

Longtime Zimbabwean opposition leader Morgan Tsvangirai passed away in a Joburg hospital on Wednesday, after a long struggle with cancer. Tsvangirai was a veteran opposition leader, and for nearly two decades was the most credible threat to the long rule of former President Robert Mugabe.

South Africa’s rand jumped more than 2% to its firmest level since February 2015 and bonds hit a one-week best on Wednesday evening, after president Jacob Zuma announced his resignation. On Thursday, the rand was trading at R11.71 to the dollar, R16.40 to the pound and R14.58 to the euro.

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