Business

5 important things happening in South Africa today

Staff Writer

 ·17 Mar 2021

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

Coronavirus: Global Covid-19 infections have hit 121.3 million confirmed, with the death toll reaching 2.68 million. In South Africa, there have been 933 new cases, taking the total reported to 1,530,966. Deaths have reached 51,560 (a daily increase of 139), while recoveries have climbed to 1,458,001, leaving the country with a balance of 21,405 active cases. The total number of vaccines administered is 157,286.

• Long road: South Africa’s economy will take a long time to recover – up to four years, according to Absa chief economist and head of research Jeff Gable. This is how long it will take to get the economy back to pre-Covid levels, he said, which is much longer than the year or so it took to recover from the 2008 global economic crash. Gable flagged low levels of job creation, rising debt levels in the budget, and ongoing power issues as the key factors working against recovery. [Moneyweb]

• Public protector: South Africa’s MPs have voted to support an inquiry into public protector Busisiwe Mkhwebane’s fitness to hold office – another step in the new process to have her removed from the position. A total of 275 MPs have voted in support of the move, while 40 MPs voted against the motion. The ANC largely supported the motion, though many of its members boycotted the meeting. The EFF is threatening legal action if the process continues. The DA brought the motion. [EWN]

• Loan scheme fail: South Africa’s R200 billion loan scheme, which was established to help businesses struggling to cope with the Covid-19 pandemic and lockdown, is coming to an end in April. Unfortunately, with as little as R18 billion in loans advanced under the programme, it is likely to miss its miniscule target of hitting 10% in disbursements. Basa and Treasury have described the scheme’s performance as disappointing, but third party analysts say it is dead in the water. [Daily Maverick]

• Not fit for purpose: The Department of Public Works and Infrastructure says the controversial Beitbridge border will not be repaired or maintained – because in its current state it is “not fit for purpose”, and spending any money trying to fix or maintain it would amount to wasteful spending. Instead, the department will be working with other departments to move forward with an “integrated border solution”. Government wasted R40 million on the Beitbridge border during lockdown. [News24]

• Markets: The rand extends its uneventful, range-bound habits following its rally towards the end of last week. It’s all eyes on the US Fed today, as markets wait to see whether there will be a change in monetary policy, and what the central bank expects for the future of the US. In other data markets will be keeping an eye on EU CPI, followed by local retail sales. The rand starts the day at R14.89 to the dollar, R17.73 to the euro and R20.69 to the pound. [Citadel Global]