Business

5 important things happening in South Africa today

Staff Writer

 ·20 Oct 2022

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

• Bad news for car buyers: JSE-listed vehicle retailer Combined Motor Holdings (CMH) expects new vehicle prices to increase by up to 10% within the next four months. “We will probably get increases of 2% to 3% almost every month, and this knock-on effect is directly due to the weak exchange rate against the dollar,” said CMH CEO Jebb McIntosh on Wednesday (19 October). [Moneyweb]

• Telkom plummets: Telkom had its worst day on the JSE since its listing in 2003, losing almost a quarter of its value on Wednesday (19 October) as MTN withdrew its bid to take it over. Rain is now the only contender for a tie-up with the fixed-line operator. Buying Telkom could increase a buyer’s subscriber base by 10%. Analysts believe MTN’s exit was a bargaining tactic, expecting them to be back soon. [BusinessLive]

• High cost for SA’s ideal power system: South Africa’s ideal power system – which is cost-effective and has the lowest greenhouse gas emissions – consists of solar PV, wind and battery storage. But the capital requirements for such a system range between R2.3 trillion and R3.1 trillion, according to a report by the National Business Initiative (NBI). However, this is a tall order considering the sheer cost – and the fact that energy minister Gwede Mantashe says South Africa still relies on coal. [News24]

• The strike is over: The Transnet strike is officially over after smaller unions that were holding out for a bigger wage increase have called off their boycott. Minority union Satawu, which vowed to continue striking after majority union Untu struck a deal with the SOE for a 6% increase, has told its members to stand down. The strike started on October 6 following a dispute over pay increases. All workers are now expected back at work on Thursday, with the weeks-long process of clearing backlogs. [TimesLive]

• Markets:  The South African rand was flat on Wednesday (19 October) ahead of the release of domestic inflation and retail sales figures later in the day. The Top-40 and the broader all-share indexes dropped by 1% and 0.53%, respectively. The rand is currently trading at R18.30/$, R17.90/€ and R20.55/£. Brent crude is trading at $93.15 a barrel. [Nasdaq]