Business

5 important things happening in South Africa today

Staff Writer

 ·25 Oct 2022

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

• Public wage dispute boils: Cosatu has raised its demands from a 6.5% to 10% increase in the public service wage talks after public service, and administration minister Thulas Nxesi invoked section 5 of the Public Service Act to apply a 3% hike unilaterally. The steep demand also comes after the Public Service Association (PSA) served the government with a seven-day notice of intention to strike after the public service wage talks remained deadlocked at the Public Service Coordinating Bargaining Council (PSCBC). [News24]

• ANC ministers exposed: Questions are being asked about what action president Cyril Ramaphosa will take against members of his own executive implicated in the state capture report. Minister Gwede Mantashe, deputy ministers Zizi Kodwa, Thabang Makwetla and David Mahlobo have all been implicated in the Zondo commission report. In response, Ramaphosa said he would assess their wrong-doing on a case-by-case basis, and while the Zondo commission said the president must act, Ramaphosa said he would do so at his own discretion. [EWN]

• Post Office corruption: Corruption at the SA Post Office has contributed to the more than R3 billion loss to the fiscus, resulting from the fraudulent issuing of vehicle licence discs. The Special Investigating Unit (SIU) found that closures of certain post offices were not reported timeously, and criminals had seized equipment from those post offices and used them to fraudulently issue vehicle licence discs, driving licences, learner driving licences, roadworthy certificates and “fees dumping”. [Moneyweb]

• More is less for Eskom: An analysis reveals that the more money Eskom spent to build and maintain power stations and the more people it employed, the less power it produced. Despite spending over R50 billion per year between 2010 and 2017, Eskom’s electricity production decreased. Neither Medupi nor Kusile is fully operational, and their energy availability factor (EAF) is so low that their performance resembles ageing power stations. By 2018, generation declined to 201,400 GWh (Gigawatt hour) – the same level as in 2003. [Daily Investor]

• Markets: South Africa’s rand fell on Monday (24 October), following other emerging market currencies, as the US dollar held firm amid global economic uncertainty. Shares on the Johannesburg Stock Exchange fell, weighed down by market heavyweights Naspers and Prosus, which slumped 17.40% and 15.19%, respectively. The rand is trading at R18.42/$, R18.19/€ and R20.80/£. Brent crude is trading at $93.23 a barrel. [Nasdaq]