5 important things happening in South Africa today

·23 Jun 2023

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

Eskom targets unlikely: Credit ratings agency Moody’s says Eskom’s targets to improve its Energy Availablity Factor (EAF) to 65% by March 2024 and 70% by March 2025 are unlikely, given the embattled power utility’s current constraints and its track record. It said that coal supply problems, mismanagement, lack of skills and sabotage will likely delay progress. Despite load shedding being eased over the last few weeks, the group’s EAF still only stands at 57%. [Business Day]

State capture not tackled properly: Chief Justice Raymond Zondo says a permanent state-capture commission should be established, which he believes will prevent the state’s assets from being captured again. Zondo added that parliament has not implemented the recommendations given in the state capture commission reports, which were released last year. He said that the Gupta family previously embezzled an estimated R58 billion out of South Africa. [eNCA, EWN]

Eskom security head suspended: Eskom’s head of security Karen Pillay has been placed on precautionary suspension. It is alledged that Eskom did not follow proper procurement procedures for a R500 million emergency contract awarded to Fidelity Services to investigate coal theft at the utility. According to News24, senior Eskom employees said that pressure came from the board to suspend Pillay, despite her cooperating with the probe into the contract. [News24]

On ice: South Africa’s plans to unleash a host of renewable energy projects to boost power generation in the country are effectively being put on ice as the depletion of grid capacity has made it difficult to connect them to the network. The South African Wind Energy Association says there’s around 30GW of renewable energy projects in the works over the next ten years. Remaining grid capacity sits at 22GW – but available capacity isn’t in regions where these projects are being built. [Daily Maverick]

Markets: The South African rand fell about 1% on Thursday against a stronger U.S. dollar as a spate of interest rate hikes by several central banks fuelled worries about global growth. Despite the rand rallying since the start of June due to improved investor sentiments following the easing in load shedding, analysts at Rand Merchant Bank said that the multi-week trend is likely over. On Friday (23 June), the rand was trading at R18.59/$, R20.32/€, and R23.62/£. Brent crude is trading at $75.27 a barrel. [Nasdaq]

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