5 important things happening in South Africa today

·6 Feb 2023

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

Mabuza to stay on: President Cyril Ramaphosa has reportedly asked David Mabuza to stay on as deputy president until the modalities of his departure can be finalised. Speaking at a funeral on Saturday, Mabuza said that he wanted to resign to make room for newly-elected ANC Deputy President Paul Mashatile. Mashatile is expected to be sworn in as an MP later today, clearing the way for him to be named South Africa’s Deputy President. [News24, EWN]

Transnet tariff hike: Transnet says it may have to increase rail tariffs to recover costs across its network. Transnet CEO Sizakele Mzimela said that the company wants to take a more commercial approach, allowing it to further invest in infrastructure and recover costs. Transnet has benefitted from a slight rebase of tariffs for its export coal line, but the line still remains troubled due to security and operational issues – such as a lack of critical spare parts. [News24]

Joburg property values are incorrect: Real estate companies in Johannesburg are refuting the city’s general valuation roll for 2023, which states the property base increased by 12% to R1.59 trillion in the last five years. The companies said that it was impossible for a rise of that size to occur due to the prevailing market and economic conditions. There are suggestions that the city is inflating property values to make up for revenue shortfalls. [BusinessLive]

Dlamini-Zuma in charge: Parts of the ANC want Nkosazana Dlamini-Zuma to lead South Africa’s potential state of disaster regarding the energy crisis. The recommendation was made at the ANC’s National Executive Committee (NEC) lekgotla last week. However, other members of the ANC are warning against the recommendation after Dlamini-Zuma’s decisions during the Covid-19 pandemic made her highly unpopular across South Africa. [MyBroadband, EWN]

Markets: On Friday, the rand fell after S&P Global’s South Africa Purchasing Managers Index (PMI) fell to 48.7 in January from 50.2 in December. Readings below 50 indicate a contraction in activity. It was the fastest pace of contraction since the end of 2021 as new orders fell due to rolling power cuts and weak economic conditions, the survey showed. On Monday (6 February), the rand was trading at R17.47/$, R18.87/€, and R21.08/£. Brent crude is trading at $80.17 a barrel. [Nasdaq]

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