Business

5 important things happening in South Africa today

Seth Thorne

 ·22 Jan 2024

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

• Households being crushed: South African households are being crushed by persistently high interest rates in the country, according to economists – and with the South African Reserve Bank expected to hold the rates again this week, the pain is going to linger for longer. Economist and independent analyst Dr Roelof Botha said the central bank’s high interest rates have created a “self-inflicted pandemic” in the country as households struggle to get by. [Daily Investor]

• ANC donor dodgy deal: According to a News24 investigation, a company with links to Deputy President Paul Mashatile has allegedly pocketed R90 million from a “seemingly dodgy land deal” with the Gauteng Department of Human Settlements. In November 2022, the company reportedly walked away with R90 million after buying land for R188.7 million and selling it to the department for R278.8 million on the same day. [News24]

• SARS fails court bid against PetroSA: The South African Revenue Service (SARS) has lost its court case that attempted to recoup around R1 billion from state-owned oil company PetroSA. The judge ruled that the tax agency allowed companies to export fuel from unlicensed depots for nearly a decade without raising issues. [BusinessDay]City Press]

• Exporters losing trust in SA logistics: According to industry experts, exporters in South Africa and other countries in the region have been increasingly avoiding South Africa’s rail and harbour logistics in favour of alternative routes to ensure that their products reach markets timeously and efficiently. [Moneyweb]

• Markets: South Africa’s rand weakened further on Friday, closing the week with the rand losing ground against a surging U.S. dollar, which is due to indications that the Federal Reserve might keep rates higher for longer. On Monday (22 January), the rand was trading at R19.04 to the dollar, R24.15 to the pound, and R20.75 to the euro. Oil is trading at $78.29 a barrel. [Nasdaq]