Business

5 important things happening in South Africa today

Staff Writer

 ·8 Jun 2020

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

Coronavirus: Global Covid-19 cases now exceed 6.83 million confirmed, with the death toll approaching 400,000. In South Africa, a further 2,312 cases were recorded, taking the total to 48,285, while deaths are two shy of the 1,000 mark (998). Recoveries have increased to 24,364, giving the country 22,923 active cases.

• Smoking gun: Fair trade group FITA says that government’s heavy and high-handed approach to lockdown regulations, which includes the controversial smoking ban, has pushed South Africans at large to lose trust in its methods, and actively work against the laws. The group said Cogta minister Nkosazana Dlamini-Zuma has expressed disdain for smokers and the industry. FITA also shot down Dlamini-Zuma’s argument that most smokers have already quit smoking as a result of the ban – saying if that were the case, the ban would not longer be necessary. [TimesLive]

• Salary fight: Five public sector unions are hauling government to court, fighting for higher than inflation salary increases – as was agreed to in negotiations prior to the coronavirus outbreak. Unions are seeking an order that government should fulfil its agreement to pay public sector workers a 5.4% increase, back dated to April. However, government says it doesn’t have the money to pay, as finances have deteriorated since the outbreak. It offered to pay 4.4% increases for lower-tier workers, but this was rejected. [Daily Maverick]

• Private public: Government has reached a deal with private hospitals on how much they will get paid to host Covid-19 patients in the event that public facilities run out of space. The price they agreed on was up to R16,000 per patient, per day – which covers the cost of the bed, a team of specialists and other services. South Africa has as many as 6,000 critical care beds to treat Covid-19 patients, however two-thirds of these are in private hospitals. [ENCA]

• MTN terror claims: South African telecoms firm MTN faces new allegations of aiding militant groups in Afghanistan, including paying protection money, in an amended lawsuit filed on behalf of hundreds of families of US soldiers. The suit alleges that MTN violated the US Anti-Terrorism Act by paying protection money of more than $100 million to al-Qaeda and the Taliban so its cellular towers would not be targeted for destruction. MTN has denied the allegations. [Reuters]

• Markets: While optimism is still rife in the market, following crippling lockdowns economic data continues to highlight the dire effect the virus had on economies. As both imports and exports in China contracted, with imports falling to a four-year low. The rand tested a break below R16.80/$ early on Monday morning, but poor data from China hampered the efforts. On Monday the rand is trading at R16.80 to the dollar, R21.36 to the pound and R18.97 to the euro. Commentary by Peregrine Treasury Solutions. [XE]