Business

5 important things happening in South Africa today

Staff Writer

 ·26 Oct 2022

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

• A new addition to government debt: Eskom has engaged with the World Bank in developing a just energy transition project by repurposing the Komati power station. This project’s estimated cost will be over R7.9 billion, and the World Bank will likely foot the bill, adding another considerable number to the government’s debt. The project plans to add 370MW of new generation capacity through solar and wind. [News24]

• Problematic illegal car imports: An estimated 440,000 illegally imported used cars are travelling regularly on South African roads, representing an R8 billion loss in import taxes. Kia SA MD Gary Scott said slack regulations allow about 55,000 “grey” imports, as they are known, to slip into SA each year, which is more than the number of new vehicles sold every month. He added that if this trade is not stopped, it would be like a 13th cheque for the industry. [BusinessLIVE]

• State-owned financials amiss: The National Treasury is among a long list of state entities that have failed to submit to Parliament their financial statements by the legislated 30 September deadline. Other entities include Eskom, the Unemployment Insurance Fund (UIF), the Compensation Fund, the National Student Financial Aid Scheme (NSFAS) and the Road Accident Fund – among others. South African Airlines (SAA) is also on the list, which last published its financial results several years ago. [Moneyweb]

• A call to prioritise the poor: Pro-poor advocacy groups have called on finance minister Enoch Godongwana to put human rights first to protect vulnerable South Africans from the harsh economic climate when he tables his medium-term budget policy statement in Parliament today (26 October). Godongwana’s budget, they argued, must “reflect a significant recovery strategy for human rights” and must include revised budgets for public health, schooling, and grants. [Times Live]

• Markets: South Africa’s rand gained on Tuesday (25 October) as the dollar hit a three-week low. The Top-40 and the broader all-share indexes dropped by 1.38% and 1.35%, respectively. The rand is trading at R18.19/$, R18.13/€ and R20.85/£. Brent crude is trading at $92.56 a barrel. [Nasdaq]