Business

5 important things happening in South Africa today

Staff Writer

 ·3 Feb 2021

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

Coronavirus: Global Covid-19 infections have hit over 103 million confirmed, with the death toll reaching 2.24 million. In South Africa, there have been 2,649 new cases, taking the total reported to 1,458,958. Deaths have reached 44,946 (a daily increase of 547), while recoveries have climbed to 1,318,504, leaving the country with a balance of 95,508 active cases.

• Vaccine rollout: The standing committee on public accounts (Scopa) has called on the minister of health and finance to conduct open and transparent tender processes for the storage of the Covid-19 vaccine, noting that government was already dealing with a number of companies that registered for the first time on the eve of the vaccine rollout. The Scopa said that rushed tenders behind closed doors led to widespread corruption with Covid-19 PPEs, and it wants government to avoid the same mistakes. [702]

• Wasteful spending: 19 government contracts, worth R400 million, awarded to the same companies responsible for the Beitbridge border fence mess, are being questioned. The Department of Public Works is going though the process of recouping R27 million spent on the border, which turned out to be a farce. It has been criticised for moving too slowly, although those responsible have been charged. No more money should be wasted fixing the fence. A long term revamp has been mooted, but could take 4 years to complete. [ENCA]

• Still struggling: South African tourism authorities say that, despite lockdown regulations being eased, the sector still faces a host of problems – adding that the back-and-forth of having the industry locked down, then opened, then locked down again, is killing businesses. Other issues are to do with the narrative around the so-called “South African variant” of Covid-19 – a term which has caught on overseas. For many businesses, the festive season was lost, and the damage has already been done. [Fin24]

• Above the law: The State Capture Commission will lay a criminal complaint against former president Jacob Zuma, who is openly defying the country’s highest court by refusing to appear before the commission. The commission’s legal team said that Zuma is happy to enjoy all the financial benefits the Constitution gives him as a former president, but refuses to be beholden to same laws when he disagrees with them. He considers himself above the law and the Constitution. [EWN]

• Markets: Steps taken to allow the Democrats to pass the US stimulus bill without Republican support saw risk appetite soar during trade on Tuesday. Local IHS Markit PMI is due today, followed by EU PMI and CPI as well as UK PMI, while the US is set to release PMI, ADP employment and various non-manufacturing numbers. The rand starts the day on the front foot at R14.94 to the dollar, R17.99 to the euro and R20.42 to the pound. Commentary by Peregrine Treasury Solutions. [XE]