Finance

5 important things happening in South Africa today

Staff Writer

 ·9 Dec 2020

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

Coronavirus: Global Covid-19 infections have hit 67.37 million confirmed, with the death toll reaching 1,545,300. In South Africa, there have been 4,011 new cases, taking the total reported to 821,889. Deaths have reached 22,432 (a daily increase of 226), while recoveries have climbed to 753,072, leaving the country with a balance of 46,385 active cases.

• GDP perspective: Economists and analysts warn that, while South Africa’s GDP numbers for the third quarter of the year were better than expected, and definitely a positive for the country’s economic prospects, the reality is that we are far from being out of the woods. Most notably, the strong growth comes off a very low base, with the South African economy going from effectively closed to open. Despite the good numbers, sectors have not recovered to their status before lockdown – which was already under pressure and declining. [Moneyweb]

• Western Cape warning: The Western Cape is pushing hard to avoid being declared a hotspot and put under similar lockdown restrictions to Nelson Mandela Bay. However, active cases of Covid-19 in the province are nearing 17,000, similar to the rate seen during the peak of infection in the province earlier in the year. Hospitals are starting to reach capacity. The provincial government has submitted an in-depth plan to national government, around ways to mitigate the spread of infection. [ENCA]

• Matric rewrite: The Department of Education is facing legal challenges over the matric maths and science paper rewrites, with lobby groups heading to court to represent pupils. The groups are arguing that thousands of students are being punished for the illicit actions of the few. Basic Education Minister Angie Motshekga says that no compromises can be made and the rewrites need to go ahead to ensure the integrity of the exams. She argued that all provinces were affected by the leaks, so it has become a national issue. [EWN]

• Stand aside: The ANC has affirmed its stand-aside rule, as the party recommits to its stated goal of rooting out corruption within its ranks. The party’s top six officials will draft guidelines for implementing the decision and present them to the ANC national working committee (NWC) and the NEC when they meet again in 2021. In the meantime, the ANC’s internal integrity commission will deal with members, and party secretary general Ace Magashule has volunteered to appear before it. [Mail & Guardian]

• Markets: Better-than-expected SA Q3 GDP growth numbers and a falling US dollar saw the rand setting up a stronger trading range of R15.01 to R15.15 against the US dollar. In the overnight session, the local unit broke through R15.00 level to trade as low as R14.92. Today sees South African retail sales data, CPI and business confidence numbers, while US JOLTS job openings will be released later this afternoon. The rand starts the day a leg stronger at R14.92 to the dollar, R18.09 to the euro and R19.96 to the pound. Commentary by Peregrine Treasury Solutions. [XE]