Finance

5 important things happening in South Africa today

Staff Writer

 ·16 Apr 2020

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

Coronavirus: Global coronavirus infections have risen to 2,083,607, with 134,632 deaths. 510,666 people have recovered, however, 1,438,309 cases remain active with 51,144 people in serious or critical condition. In South Africa, confirmed cases have risen to 2,506, with 7 addition deaths.

• The new normal: Medical experts have warned South Africans to get used to life at a distance from others for the foreseeable future, as life cannot go back to the way it was as long as the coronavirus remains a threat to general society. Echoing views from government’s Covid-19 advisory panel, the experts said that current data showing low infections in South Africa – while good news – is not indicative of a turn for the better. More testing needs to be done. Meanwhile, even if the lockdown is lifted, many practices will need to be stopped. [Daily Maverick]

• Bleak outlook: Moody’s is the latest group to cut South Africa’s GDP growth outlook, now expecting GDP to decline by 2.5% in 2020. Moody’s outlook is more optimistic than even SARB’s forecast, which is -6.1% for year. The IMF has updated its global outlook, and now sees South Africa’s economy contracting by 5.8% – meanwhile banking group BNP Paribas has an even worse outlook for the country, seeing economic decline over 8%. [BusinessTech]

• Outbreak: Private hospital group Mediclinic has been forced to shut operations at one of its hospitals in Morningside after 15 staff members tested positive for the coronavirus. The hospital was treating four Covid-19 patients. This marks the second private hospital closure due to local outbreaks, following the shuttering of Netcare’s St Augustine’s Hospital in Durban after an outbreak of Covid-19 affected 47 staff. [Moneyweb]

• Hiking prices: The Competition Commission is investigating 300 complaints against retailers for hiking prices during the coronavirus outbreak and lockdown – including a mask manufacturer that allegedly hiked prices by over 500%. The company in question sold boxes of face masks in early march for R41 a box, then hiked prices to R500 a box. Most complaints of excessive pricing were related to hand sanitisers and face masks, followed by toilet paper, flu medication and other products, the Commission said. [Reuters]

• Markets: South Africa’s rand tumbled on Wednesday as concerns grew of a deep global recession concentrated in emerging markets, adding to a selloff triggered when the central bank unexpectedly cut local lending rates the previous session. The rand has dropped around 20% over the past month. On Thursday the rand was trading at R18.71 to the dollar, R23.35 to the pound and R20.36 to the euro. [XE]