5 important things happening in South Africa today

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

• Post Office in distress: The Auditor-General (AG) says it cannot confirm whether the embattled South African Post Office will remain a going concern for the foreseeable future. The state-owned entity failed to receive a clean audit in the 2021/22 financial year, as the AG flagged a R2.1 billion net loss in 2022 and liabilities that exceeded assets by R4 billion, among others. This adds another year to the Post Office’s history of losses with no sustainable income. [News24]

• Businesses offer aid to Transnet: Busa, BLSA and Durban Chamber of Business have offered to pay an additional levy of R148 per container to fill the gap between Transnet’s offer and what the unions are demanding, in a bid to avoid the negative economic impact of the strike. The business groups’ offer also includes an additional strike-avoidance levy until an agreement is reached, as well as subsidising Transnet port terminals and having port workers declared essential workers, who are then not allowed to go on strike. [BusinessLive]

• A massive explosion in Durban: The eThekwini municipality said on Tuesday night (11 October) that an explosion at the 275kv Klaarwater primary substation caused a widespread power outage to about 50% of the city. The affected areas included the city’s northern, western and southern regions; however, the municipality released a statement this morning saying that power has been restored in most areas affected by the explosion. [EWN]

• South Africa’s growth revised downwards: The International Monetary Fund (IMF) has revised its growth of South Africa downward. It now expects the economy to grow by only 2.1% this year – in July, it was still expecting growth of 2.3%. For next year, it now sees a growth of 1.1% – from 1.4%. In contrast, Sub-Saharan Africa is projected to grow faster than South Africa, at 3.7% in 2023 The outlook highlights that more energy and food price shocks might cause inflation to persist for longer. [eNCA]

• Markets: South Africa’s rand weakened in early trade on Tuesday as the US dollar rose amid expectations of aggressive rate hikes and ongoing geopolitical tensions. The Top-40 and the broader all-share indexes dropped around 1% and 0.83%, respectively. The rand is currently trading at R18.19/$, R17.66/€ and R19.98/£. Brent crude is trading at $93.74 a barrel. [Nasdaq]