Here’s what is happening in and affecting South Africa today:
- KPMG’s future in South Africa is under threat, with Absa’s decision on Thursday to drop the auditing firm said to remove a R138 million annual paycheque from the group’s books. While KPMG SA’s other big banking client Nedbank, said it will keep the auditor on (for now), analysts expect more big clients to abandon the firm. [EWN]
- South African motorists should prepare for more petrol price pain in the coming months, as oil prices linger around three-year highs, and the rand continues to feel pressure from the dollar. Motorists were hit with a 50 cent hike in May, and analysts expect June’s adjustment to also be upwards, pushing the price to over R15 a litre. [IOL]
- Twitter users across the globe are being encouraged to change their passwords after the social media group reported a ‘glitch’ that had passwords stored in plain text on the system – reportedly for months. A source within Twitter said the issue was only discovered in the past few weeks, and has been reported to regulators. [eNCA]
- The mining charter issue in South Africa will be resolved ‘soon’ according to president Cyril Ramaphosa, who says a deadline has been set. The controversial mining charter issue has been hanging over the country’s head for months, and would drive foreign investment out of the country, according to mining groups. It calls for increased black ownership of SA mines. [Bloomberg]
- South Africa’s rand strengthened on Thursday as the US Federal Reserve avoided a hawkish tone at its latest monetary policy meeting, while stocks slipped. On Friday the rand was trading at R12.59 to the dollar, R17.10 to the pound and R15.10 to the euro.