Business

5 important things happening in South Africa today

Staff Writer

 ·7 Oct 2022

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

• Big rate hikes expected: The South African Reserve Bank (SARB) is expected to increase interest rates by another 125 basis points (bps) by early next year, Absa says. The SARB said that this might be necessary as growth projections have been consistently revised lower while inflation has risen sharply – emphasising the need to anchor inflation expectations at the mid-point of the target range of between 3% and 6% over the medium term.  [Daily Investor]

• Eskom faces coal thieves: High coal export prices to Europe have made it more attractive for corrupt suppliers to cheat Eskom out of its good quality coal. Eskom CEO André de Ruyter says that due to the arbitrage created between export coal and the coal that Eskom buys, there is a three-times multiple that you can get by stealing Eskom’s coal. Eskom is receiving discarded coal which is of low quality and doesn’t burn well.  [News24]

• Transnet strike: Transnet says that Eskom’s wage deal to provide an increase of 7% to its workers earlier in the year complicates its negotiations. This deal by Eskom has left some employees with the impression that such pay hikes could be funded through the government, and Transnet CEO Portia Derby has asked Eskom to “repeat” that the government is not funding its agreed wage hike of 7%. Transnet Employees went on strike this week after rejecting a 1.5%wage increase. [News24]

• Kruger Park promises safety: The brazen murder of a German tourist has highlighted safety concerns around the highly popular Kruger National Park, which has instilled fear in domestic and international visitors. SANParks acting CEO Hapiloe Sello pleaded with visitors not to cancel travel plans as they are completely safe within the park’s confines. She added that while she understands the incident has brought a lot of apprehension to many local and international visitors, they can safely enter the park. [eNCA]

• Markets: Emerging market stocks and currencies have slumped nearly 8% so far in 2022 as aggressive central bank tightening to tame surging inflation. The rand slipped 0.3% after the central bank warned that power outages would shave about 1% from South Africa’s economic growth. The rand is currently trading at R18.01/$, R17.63/€ and R20.09/£. Brent crude is trading at $94.19 a barrel. [Nasdaq]