Business

5 important things happening in South Africa today

Staff Writer

 ·23 Feb 2017

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

• Business is generally happy with finance minister Pravin Gordhan’s Budget speech for 2017, though many economists and analysts have also given their fair share of criticism. Gordhan has been praised for managing to balance the budget amid a volatile economic and political environment – but has also been slammed for putting more pressure on South Africa’s already strained and limited tax base, especially the wealthy.

• Sticking with the budget, deputy finance minister Mcebisi Jonas says that the National Treasury had no choice but to ‘burden the rich’ with South Africa’s tax shortfall. It is the one area in the budget that has received the most criticism. Treasury said that it needs to maintain the progressive tax system, and that those who earn more simply have to pay more.

• North West ANC chairperson and premier Supra Mahumapelo says he is unashamed about being ‘captured’ by president Jacob Zuma. Speaking in an interview with the SABC, Mahumapelo he has been unambiguous and undeterred in his support of the president. He’s pushing for a R6 million statue of Zuma to be erected in his province, and is also behind the push for ex-Eskom boss Brian Molefe’s nomination as MP.

• Not strictly South African news, but seven Earth-sized planets have been discovered in a solar system ‘only’ 39 light years away, Nasa scientists have announced. Three of these planets are in what scientists call the ‘habitable zone’ – a good distance from its sun (Trappist-1) where life would theoretically be sustainable. The Trappist-1 system has the largest number of Earth-sized planets known to orbit a single star, Nasa said.

• South African bond yields spiked on Wednesday before easing back after Finance Minister Pravin Gordhan targeted the wealthy with tax hikes, underscoring the challenge of boosting revenues to plug the budget gap. On Thursday, the rand was trading at R12.99 to the dollar, R16.14 to the pound and R13.72 to the euro.