5 important things happening in South Africa today

·1 Jun 2023

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

Nuclear boom: The Department of Mineral Resources and Energy (DMRE) is planning to issue requests for proposals for 2,500 MW worth of new nuclear energy projects, which will be added to the 1,800 MW that Koeberg will supply if Eskom can secure its life extension for another twenty years. Although nuclear power sources have been criticised as being far more expensive than other alternative power supplies, including renewables and gas, DMRE minister Gwede Mantashe said that government plans to move ahead with the projects. [Business Day]

Sweet saviour: The embattled sugar and property company Tongaat Hulett Limited may have a future, according to its business rescue practitioners. The practitioners said the group could soon secure a potential equity partner, with eight selected strategic equity partners expected to make final offers this month. As per the company’s business rescue plan, it will be delisted from the JSE. [Moneyweb]

Municipality failures: Auditor-general Tsakani Maluleke says more professional local government structures will be able to withstand the instability caused by council changes, which will improve service delivery. She said that the professionalisation of local government would entail giving tenure, confirming competence for those appointed, and a code of ethics. According to the latest municipal audit results, only 38 of the nation’s 257 municipalities received clean audits, dropping from 41 the previous year. [TimesLive]

Magushule on the ropes: Former ANC secretary-general Ace Magashule will likely be expelled from the party after being found guilty of contravening its constitution when he tried to suspend Cyril Ramaphosa in 2021. Following a disciplinary case in May, the party’s national disciplinary committee (NDC) said that Magashule should be expelled for his behaviour. The former secretary-general will have seven days to explain why he should not be expelled from the party. [News24]

Markets: The South African rand weakened on Wednesday to circle near a record low hit in the previous session, pressured by a strengthening US dollar and tepid local investor sentiment. The rand lost more than 7% against the dollar in May as investor sentiment slumped over a raft of factors, including a heightened power crisis and US allegations denied by South Africa that it supplied weapons to Russia last year. On Thursday (1 June), the rand was trading at R19.72/$, R21.06/€, and R24.51/£. Brent crude is trading at $72.09 a barrel. [Nasdaq]

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