5 important things happening in South Africa today
·18 Jan 2018
Here’s what is happening in and affecting South Africa today:
- Supporters of president Jacob Zuma have warned new ANC president Cyril Ramaphosa that firing Zuma now would destroy his shaky hold on the party, and ruin all the talk of unity he has pushed since taking the top spot in December. The ANC is expected to discuss Zuma’s future at a NEC meeting this week.
- Eskom is reportedly in secret discussions with former CEO and senior executive Matshela Koko to negotiate a ‘golden handshake’ for his exit from the power utility. Koko has been accused of corrupt activity, but was cleared by Eskom’s disciplinary processes. Despite this, and a bleak financial situation, the group wants a quiet exit for Koko.
- The Steinhoff scandal has cost US banks over $1 billion in loans and charges, according to Bloomberg data. Citibank has lost over $370 million, while Bank of America has lost $292 million from the retailer’s accounting fumbles. Steinhoff has lost 90% of its value since December 2017 after revealing accounting irregularities.
- While all eyes are on Cape Town amid its deepening water crisis, the drought in the Eastern Cape is fast-becoming a much bigger problem, as dam levels drop at an alarming rate. While some relief is expected from rainfall in the coming months, this is only projected well after March, by which time dams in the area may have dried up.
- South Africa’s rand weakened on Wednesday, giving back gains that lifted it to its firmest level in 2-1/2 years as caution crept back into the market and some investors held off extending long positions. On Thursday the rand was trading at R12.32 to the dollar, R17.01 to the pound and R15.01 to the euro.
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