Business

5 important things happening in South Africa today

Staff Writer

 ·18 Mar 2021

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

Coronavirus: Global Covid-19 infections have hit 121.8 million confirmed, with the death toll reaching 2.69 million. In South Africa, there have been 1,531 new cases, taking the total reported to 1,532,497. Deaths have reached 51,634 (a daily increase of 74), while recoveries have climbed to 1,459,056, leaving the country with a balance of 21,807 active cases. The total number of vaccines administered is 168,413.

• Ballooning costs: New research from the CSIR revealed that Eskom produced less electricity in 2020 than it did in 2010, but the cost to produce this electricity has tripled. In 2010 Eskom’s primary energy costs came in at R29.1 billion. Fast forward ten years and primary energy costs have ballooned to R112 billion. In its latest annual report, Eskom blamed an “unsustainable increase in the average purchase cost per ton of coal” for the rapidly primary energy costs. [MyBroadband]

• Chinese vaccine: China’s coronavirus vaccine manufacturer Sinovac Biotech says it is able to supply South Africa with 5 million doses of its Covid-19 vaccine “within weeks”, however, local regulators have yet to approve it for use. Phase 3 trials for the vaccine have been conducted in four countries, and overall efficacy came in at just over 50%, rising to 65% for severe disease. This jumped to about 90% for hospitalisation and very severe disease. Authorities are still assessing it. [702]

• Strike action: SA Federation of Trade Unions (Saftu) leader Zwelinzima Vavi says labour must get ready to mobilise and join students in their protest action for free education in the country. He said that the commodification of education during a time of austerity causes major problems, as it traps the poor and disadvantaged in that state. He said that working class parents cannot afford fees, and government has cut subsidies and funding. He called for workers to stand behind students, and to join them in the streets, if necessary. [Daily Maverick]

• Tourism fund: Tourism minister Mmamoloko Kubayi-Ngubane wants to clarify that government’s R1.2 billion Tourism Equity Fund is not only for businesses in the sector that are 100% black-owned, but open to any business that is majority black-owned (51%+). She said that the fund has drawn interest across racial groups, with white business owners partnering with black businesses – which is serving government’s transformation agenda. [News24]

• Markets: The Federal Reserve is all but worried about inflation and yesterday’s FOMC statement brought a new bout of risk taking in the market with the rand breaking below the repeatedly tested R14.80/$ mark. Markets will be keeping an eye on the ECB president today as she delivers a statement, while the BOE will announce its interest rate decision. The rand starts the day at R14.67 to the dollar, R17.53 to the euro and R20.44 to the pound. [Citadel Global]