Business

5 important things happening in South Africa today

Staff Writer

 ·18 Dec 2019

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

• First it was August, then November, now Gauteng motorists will have to wait until 2020 to hear what direction government is taking with e-tolls. Cabinet will make a decision at its first meeting in the new year. The latest delay comes as investigations into what can be done with the system were expanded to include solutions to financing Gauteng’s roads and beyond, outside of e-tolls. Minister in the presidency, Jackson Mthembu heavily implied cabinet was looking beyond e-tolling. [Moneyweb]

• Energy minister Gwede Mantashe has vowed to keep burning coal to generate electricity, even as the continent’s biggest greenhouse gas emitter adopts more renewable energy sources to meet its commitments on tackling climate change. He also said he would not be swayed by anti-coal activists. There is a big push globally to drop coal in favour of renewable energies which are becoming cheaper every year. Mantashe said that entire towns in South Africa are based around a coal economy. [Reuters]

• The Competition Commission is looking for more power, specifically the power to tackle foreign banks who engage in ‘irregular activities’ which violate South African rights. The Commission has approached the courts to fine dozens of these banks for rigging the rand, amid discoveries of certain traders colluding on bid prices. However, pursuing these banks for fines has proven futile, as the alleged trades happen in foreign countries where the Commission has no jurisdiction. [ENCA]

• Transport minister Fikile Mbalula has warned that any motorists breaking the country’s road laws this festive season will be dealt with decisively. With roads expected to be busier over the next two weeks, authorities are out in full force and will be on the lookout for speeders and drunk drivers, especially. Last yer over 700 people died on SA roads over the festive season, with the worst areas being routes linking Gauteng and KZN. [EWN]

• South Africa’s rand weakened on Tuesday as the previous week’s gains gave way to some profit-taking and fears about Britain’s exit from the European Union resurfaced. Reports on Tuesday that new British Prime Minister Boris Johnson was ready to push for a hard exit from the monetary union scuppered some of the early-session risk appetite that had kept the rand and its emerging market peers bid. On Wednesday, the rand was at R14.41 to the dollar, R18.88 to the pound and R16.05 to the euro.