5 important things happening in South Africa today

·1 Jun 2022

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

Petrol pain: Global fuel prices are breaking record heights as the EU boycotts Russian oil, and the end of lockdowns in China has seen demand in the Northern hemisphere increase while supply remains scarce. Saad Rahim, a chief economist at Trafigura, says that he expects prices to continue to rise as they show no sign of slowing. On Tuesday, the Department of Mineral Resources and Energy extended a reduction in the general fuel levy; however, the department noted that it would only smoothen the impact of persistently higher fuel prices. [News24]

Public servant wages: Trade unions and the government have progressed in ongoing wage negotiations as the government tables a 4.5% wage hike offer for public servants. This follows the government previously tabling a 0% offer in response to a 10% demand by unions. In conversation with Eyewitness News, trade unionists said that they are willing to revise their demands in light of the recent move by the government. [EWN]

Unemployment reversal: Economist Raymond Parsons from the North-West University of Business School says that the positive development in the unemployment rate may reverse due to a weaker global environment directly weighing on export potential and the tightening of domestic monetary policy. This follows a slight fall in the unemployment rate in the first quarter of 2022. Parsons expects that pressures will push unemployment above 35%. [BusinessLive]

Cybercrime on the rise: According to the CEO of the information and communications technology company BCX, South African companies are increasingly falling victim to security breaches. He added that there is a ‘concerted effort’ to target critical infrastructure in the country. Cybercriminals are now targeting essential infrastructure, as seen with the recent cyberattack on Transnet. [News24]

Markets: Global equity markets dipped while US Treasury yields rose sharply as investors weighed the prospects of higher inflation following a phased ban of Russian oil imports by the EU. EU leaders agreed in principle to cut 90% of oil imports from Russia. Oil prices reached new highs, with Brent crude reaching $122.84. The rand is currently trading at R15.66/$, R16.78/€ and R19.71/£. [Nasdaq]

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