Business

5 important things happening in South Africa today

Staff Writer

 ·22 Jun 2020

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

Coronavirus: Global Covid-19 infections have hit 8.8 million, with the death toll reaching over 464,000. In South Africa, an increase of 4,621 new cases takes the country’s total to 97,302. Deaths have risen to 1,930, while recoveries have increased to 51,608, leaving a balance of 43,764 active cases.

• Emergency budget: Finance minister Tito Mboweni’s emergency budget will be top of mind this week. The presentation will take place on Wednesday 24 June, and economists and analysts are not quite sure what to expect. The budget needs to deal with government’s economic response to the damage caused by the Covid-19 pandemic and nationwide lockdown – but many note that the country lacks the finances to manoeuvre, against a backdrop of weak fundamentals that have persisted for years. [BusinessTech]

• Dexamethasone: South Africa’s health authorities are ready to dish out the guidelines for the local use of dexamethasone – the ‘breakthrough’ drug that has found to help serious cases of Covid-19. South Africa has around 300,000 doses of the drug available, with one key supplier, Aspen, saying that there shouldn’t be a problem to meed demand. The drug has been in use for a long time, and Aspen does not hold exclusive distribution rights. So health professionals will have multiple supply sources available. [702]

• Payday: While South Africans continue to suffer pay cuts, retrenchment and forced leave in the wake of the Covid-19 lockdown, municipal leaders in Steve Tshwete Municipality in Mpumalanga have quietly helped themselves to salary increases of 17% – with the municipal manager getting a massive 48% increase. Municipalities are being criticised for implementing 6%+ increases for workers at a time government funds are severely strained, and residents face rate hikes for service delivery. [Moneyweb]

• Taxi strike: Gauteng taxi owners have seemingly made good on the promise to shut down on Monday, with key taxi ranks being devoid of any activity early in the morning, leaving commuters stranded. The provincial taxi industry is upset over government’s meagre support measures for the sector, demanding more finance and looser restrictions on their trade. However, transport minister Fikile Mbalula says that the truth of the matter is that government has no more money, and is doing what it can. Taxis will get a once-off payments of R1 billion from government. [ENCA]

• Markets: A sense of caution marks the start of this week, as an increase in Covid-19 infections in countries such as the US, South Korea, Israel and Australia stoke fears of a second wave potentially hitting already burdened economies. The local economy will come into focus this week, as we prepare for the emergency budget, and unemployment numbers later in the week. The rand is expected to remain largely range-bound. On Monday the rand was at R17.33 to the dollar, R21.46 to the pound and R19.41 to the euro. Commentary by Peregrine Treasury Solutions. [XE]