Business

5 important things happening in South Africa today

Staff Writer

 ·26 Apr 2023

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

• Coal investor struggle: Eskom will likely struggle to find private investors willing to revitalise its coal-fired power plants, with many investors, such as banks and asset managers, having already committed to renewable energy projects. Olga Constantatos from Futuregrowth added that Eskom’s R254 billion debt relief would give the utility some respite but stressed that it needs to address several other challenges, including corruption, a high-cost base, and cash flow difficulties. [Business Day]

• Joburg water crisis: The City of Johannesburg is losing nearly half of the water it provides daily. Johannesburg Water’s non-revenue water (NRW) – the measurement of water lost to leakages or non-billing – stands at 44.8%, up from 39.4% in 2020/21. The city’s NRW totalled R3 billion in the 2021/22 financial year – roughly a third of the R8.9 billion revenue for the year. The city aims to reduce its NRW to 32%. [Moneyweb]

• CEO wheeled off: Meals on Wheels Community Services, a non-profit organisation, has suspended its CEO after an allegedly damning investigation into her prior work experience. CEO Nelisa Mabenge was investigated after whistleblowers complained that she lied about being an advisor to President Cyril Ramaphosa from 2018 to 2020. The Presidency also denied that she ever worked there. [City Press]

• RMB trust battle: Community trusts linked to Richards Bay Minerals (RMB) accuse the mining company of trying to use the courts to gain control over how funds are spent. Last November, RBM approached the court to amend four trusts, which it argued would allow for transparency and good governance, with the funds used to benefit mining-affected communities as planned. However, responding papers filed with the court from the community trusts said that the trusts are working as intended and should remain as they are. [News24]

• Markets: South Africa’s rand slipped on Tuesday against the dollar as the central bank warned core inflation in the country remained elevated. The South African Reserve Bank (SARB) said in its April Monetary Policy Review that headline inflation had peaked. Still, core inflation remained elevated, putting upward pressure on the consumer prices outlook. On Wednesday (26 April), the rand was trading at R18.31/$, R20.09/€, and R22.73/£. Brent crude is trading at $81.04 a barrel. [Nasdaq]