Government

5 important things happening in South Africa today

Staff Writer

 ·31 May 2022

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

• Fuel price hike looming:  There are growing calls for the fuel levy to be scrapped as South Africans struggle to make ends meet. A R1.50 decrease in the levy was implemented in April, lasting only until 31 May. The fuel levy collects roughly R90 billion a year for the government. However, the Department of Energy and National Treasury are now being forced to look at other interventions as the country faces a petrol price crisis with an increase of around R3.80 a litre projected for June, taking the petrol price to R25 a litre. [EWN]

• Preferential procurement: According to the National Treasury, regulations around procurement in South Africa that were declared unlawful by the Constitutional Court earlier this year are still valid. As a result, the Treasury has granted more than 110 organs of state exemption from the provisions, including Transnet and Sanral, to ensure that service delivery is not interrupted. Economists warned that slow procurement could ultimately postpone economic activity and impact GDP growth in 2022. [Moneyweb]

• All-time low: A new report by PwC reveals that supply chain pressures on the local economy are now worse than at the height of the Covid-19 pandemic and the 2008 global financial crisis. The group warned that the invasion of Ukraine by Russia, paired with the lockdowns in China, the floods in KwaZulu-Natal, and load shedding are exacerbating pressures. PwC also noted that the GDP forecast for the South African economy this year is much lower, at around 2%. [Moneyweb]

• Ivermectin no more: The SA Health Products Regulatory Authority (Sahpra) has terminated the programme that allowed controlled access to horse dewormer ivermectin for the prevention and treatment for Covid-19. The termination follows findings from various studies and clinical trials that the drug had no impact on treating the coronavirus, and was generally unsafe for use by humans. Sahpra also noted declining interest in the drug. The programme has been terminated with immediate effect. [TimesLive]

• Markets: South Africa’s rand strengthened on Monday as the US dollar weakened, ahead of a slew of local economic data in the coming days that could give insight into the economy’s health. Economists said that the rand gained as markets settled on the US Federal Reserve’s minutes, indicating a steady rate hike cycle and little chance of recession. The rand is currently trading at R15.51/$, R16.66/€ and R19.56/£. [Nasdaq]