Business

5 important things happening in South Africa today

Staff Writer

 ·12 May 2020

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

Coronavirus: Global cases of Covid-19 are now standing at 4,256,022, with deaths at 287,332. Total recoveries have increased to 1,527,517, leaving 2,441,173 cases active, where 46,936 people are in serious or critical condition. In South Africa, cases have increased to 10,652, with deaths now past the 200 mark at 206. Recoveries sit at 4,357, meaning 6,089 cases remain active.

• Level 3 anticipation: Ministers are dropping hints that a move to lockdown level 3 may be coming soon – while analysts think it could happen as soon as this week. Health minister Dr Zweli Mkhize has said that extending tight lockdowns will likely have little impact on decreasing Covid-19 cases now, and that most of the problem areas have been identified. Police minister Bheki Cele confirmed that government was discussing the move to level 3. However, a new metro-level model could see some areas stay at higher levels. [TimesLive, BusinessTech]

• How things work: Government has agreed to provide the Fair Trade Independent Tobacco Association (FITA) with record of reasoning behind its move to ban smoking under lockdown – though it insists minutes of meetings held by the National Command Council do not contain this information. In fact, according to court documents received by FITA, it has become evident that such decisions aren’t made by any sort of vote within the NCC, so the minutes wouldn’t reveal much. FITA is taking government to court over the ban. [FITA]

• Rough rentals: If you’re struggling to pay rent due to a loss of income during lockdown, credit expert Michelle Dickens advises that you ensure that you have documentation proving you’re no longer getting income – and allow your landlord to contact your employer to confirm your position. She said some options that can be looked at is using your deposit to pay rent (and top it back up later), for renters to work out a rental deferment plan, so you can make up payments once you have an income again. [Moneyweb]

• Plight of flight: Airline SA Express, which is under provisional liquidation, is in talks with a potential buyer, according to its administrators – but any strategy the group follows, be it sale or restructuring, will require substantial funding from its shareholder, ie government. This does not bode well for the airline or its employees, who have not been paid properly since February. Government has made it clear it has no more money to pump into airlines, with similar stresses on SAA. [ENCA]

• Markets: South Africa’s rand weakened on Monday as optimism over the global economic recovery faded, with investors turning back to safe haven assets as a second wave of novel coronavirus infections hit South Korea and Germany. The rand is likely to remain volatile, highly susceptible to international events, and further retracement will depend on a much greater subsidence in global risk levels. On Tuesday the rand was at R18.45 to the dollar, R22.73 to the pound and R19.93 to the euro. [XE]