Finance

5 important things happening in South Africa today

Staff Writer

 ·29 Aug 2019

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

• South Africa will likely avoid a recession, with GDP data expected next week to show slight growth, compared to a sharp decline in the first quarter of the year. While the economy is stagnant and barely growing, the key difference is load shedding – which crisis-hit Eskom managed to avoid in the second quarter of the year. Economists see slight growth in Q2, but no cause for celebration, as the economy remains under pressure. [Daily Maverick]

• Two massive bailouts of R59 billion and R69 billion for Eskom of the next three years may not be enough, with Treasury now indicating that even more money may need to be fed into the failed power utility by March 2020 if it fails to stick to its borrowing plan. Discussion documents on Eskom revealed that the utility has come close to complete collapse multiple times this year, and if it should do so, it would take the whole of South Africa with it. [Reuters]

• Minister of transport Fikile Mbalula has met with the AA and Outa over the e-tolls impasse, to consult on solutions to the failed system. Various groups, including those met on Wednesdays as well as the Gauteng provincial government have called for the system to be scrapped – however the country needs a solution to the R47 billion in debt owed for the system. A solution, or at least an official government stance was promised for the end of August. [ENCA]

• ANC secretary general Ace Magashule’s name has again come up in the state capture commission, with former Free State MEC Mxolisi Dukwana alleging that Magashule pocketed a R10 million kickback in a R255 million asbestos project. Magashule, during his time as premier of the province, has been accused of being the kingpin in many cases of bribery and corruption, including those involving the Gupta family. [EWN]

• South Africa’s rand slowed slightly on Wednesday as traders continued to tread cautiously with an eye on global developments, while stocks strengthened. The currency has struggled for momentum in either direction this week with a lull in local political developments offsetting the swings in the trade spat between Washington and Beijing. On Thursday the rand was at R15.42 to the dollar, R18.81 to the pound and R17.08 to the euro.