5 important things happening in South Africa today

·27 Jun 2023

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

Grant problem: Prof Haroon Bhorat, who serves on the Presidential Economic Advisory Council (PEAC), says the social relief of distress (SRD) grant is not increasing the chance of getting employment in South Africa. Although the grant increased the chance of getting employment by 3% when it launched, that effect subsided within a year. Bhorat said the funds should instead be directed to the informal and formal sectors as this will drive development and supply-driven growth. [Business Day]

Putin unlikely to come: Due to a tense domestic environment following an attempted coup, it is unlikely that Russian President Vladimir Putin will visit South Africa in August. The rand recently hit an all-time low following allegations that South Africa supplied arms to Russia, and concerns still persist that South Africa could be hit with sanctions due to its ties with Russia. However, Econometrix’s Azar Jammine said that Putin not attending the summit will likely ease the pressure on the rand. [News24]

Chicken virus: South Africa has reported two outbreaks of H7 bird flu in Mpumalanga, according to the World Organisation for Animal Health (WOAH). Just under 10,000 birds died from the virus in the town of Victor Khanye, which is just east of Johannesburg. The strain detected was H7, different from the H5N1 strain that has killed millions of chickens around the world. [Reuters]

UNISA chaos: Higher Education, Science and Technology Minister Blade Nzimande says he will need time to assess the future of the University of South Africa (Unisa) after an independent assessor recommended that the institution be placed under administration. The assessor said that the university lacked the correct governance structures and was filled with maladministration and corruption. Nzimande said that he has to study the assessor’s recommendations and hear a response from the Unisa council. [EWN]

Markets: The South African rand gained 1% on Monday as investors watched for potential ripple effects of the aborted weekend mutiny in Russia. The market impact of a short-lived rebellion by the Wagner Group was still unclear, analysts said, with global oil prices slightly higher on concerns regarding Russian stability and crude supply. On Tuesday (27 June), the rand was trading at R18.56/$, R20.27/€, and R23.64/£. Brent crude is trading at $74.59 a barrel. [Nasdaq]

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