Business

5 important things happening in South Africa today

Staff Writer

 ·29 Mar 2022

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

Coronavirus: In South Africa, four new Covid-19 death has been reported, totalling 99,970. The country has 13,636 active cases and a recovery rate of 96.9%.

• Vaccines take a jab: The South African government is set to destroy more than 92,000 doses of Pfizer’s coronavirus vaccine that expire at the end of March. The government failed to encourage enough public demand for the vaccines and made no arrangements to donate them to other countries before they reach the end of their shelf life. In February, the government announced the shortening of intervals between Pfizer shots and the ability to have a Pfizer booster regardless of if a person had a Johnson & Johnson jab. [BusinessDay]

• Public servants lose out: Finance Minister Enoch Godongwana says that the National Treasury needs to manage growing debt-servicing costs and other expenditure areas. Therefore, it cannot borrow more to compensate public servants. He admitted that the government’s decision to redirect money from frontline services to bail out Eskom resulted in public services being neglected. He also said that government is no closer to solving the Eskom problem despite taking money from frontline departments such as police stations and home affairs since 2013. [News24]

• Rent price decline: South Africa’s largest landlords are being forced to take stiffer markdowns on rentals as they confirm leases with existing and new tenants. Some property funds are reporting rent reversions of over 20%. This indicates that some lease agreements for the same property are being concluded at close to a quarter lower than the lease signed before. Rental companies noted that office spaces are feeling the brunt of this trend as a combination of oversupply in business hubs such as Sandton paired with a sharp reduction in demand due to flexible working arrangments and Covid-19 take their toll. [Moneyweb]

• ANC elections: Research reports suggest that President Cyril Ramaphosa will likely win the ANC elective conference in December; however, he will go on to lead a coalition government from 2024 onwards as the ANC begins to decline. Three of four scenarios outlined by expert data and expertise from the Institute for Security Studies point to the ANC falling below 50% of the vote in the 2024 election. The most likely scenario sees Ramaphosa in his second term, overseeing a period of ‘hesitant reform’. The least likely scenario sees a massive Ramaphosa-led split in the ANC, which divides the voter base, leaving the party in the hands of the RET faction. [Daily Maverick]

• Markets: China’s main financial hub, Shanghai, has been put on lockdown to contain Covid-19 cases resulting in Chinese shares dipping. Oil prices also fell as investors anticipated a weaker demand from the world’s second-biggest economy. U.S. crude fell 6.4% to $106,60 per barrel and Brent crude lost 6.33% to $113,01. With some investors betting that US rates could rise by 50 basis points in April, analysts warned that stock could see deeper losses in the coming months. The rand is currently trading at R14.67/$, R16.13/€ and R19.21£. [Nasdaq]