5 important things happening in South Africa today

·9 Nov 2022

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

Transnet threat: A train carrying export coal from Mpumalanga to Richards Bay was derailed near Ulundi on Tuesday (8 November). Transnet is expected to engage with traditional leaders in the area and the South Africa Police Service as it is extremely concerned about disruptions to its operations. Last year alone, Transnet saw 70 derailments, costing the freight rail company hundreds of millions of rands. [News24]

SA’s extra $10 billion: South Africa has secured an extra $10 billion from the International Partner Group (IPG) of five nations that previously pledged $8.5 billion to support the country’s transition plan from coal to renewable energy. This came after President Cyril Rhamaphosa said during a speech at the COP27 summit that the country needs close to R1.5 trillion to realise its transition goals. However, it is still unknown in what form this extra funding will be offered as the previous $8.5 billion mostly consists of loans. [Mail and Gaurdian]

Compensation for loss and damage: On Tuesday (8 November), African activists hailed the inclusion of the issue of “loss and damage” — essentially compensation to developing countries harmed by climate change, which is fuelled mostly by rich, industrialised countries — which was tabled on the agenda at the COP27 summit in Eygpt this week. This proposal would discuss the possibility of developed countries compensating for the costs that developing countries can’t avoid or need to “adapt” due to climate change. [TimesLIVE]

Green light for Amazon development: Developers of the R4.6 billion Amazon office park in Cape Town can proceed with construction after a full Western Cape High Court bench on Tuesday (8 November) rescinded a previous judgment interdicting the construction. This comes after Amazon’s office, public park, and affordable housing project on a former golf course had been tied up in litigation for a year, leaving the city and provincial authorities concerned that it gave the impression that Cape Town is hostile to development. [BusinessLive]

Markets: South Africa’s rand weakened in early trade on Tuesday (8 November) as the U.S. dollar steadied after two days of losses. “The rand briefly broke below R17.70 last night, but given the big move we have seen over the last two days and some good importer demand, we expect the rand to consolidate for now,” said TreasuryONE in a research note. On Wednesday (9 November), the rand was trading at R17.74/$, R17.87/€ and R20.48/£. Brent crude is trading at $94.84 a barrel. [Nasdaq]

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