Government

5 important things happening in South Africa today

Staff Writer

 ·2 Jun 2022

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

• Flight prices: The South African Competition Commission says that airlines have committed to not inflating fares following Comair grounding British Airways and Kulula flights this week. The airline is waiting to secure additional funding from investors. Comair noted that passengers booked on grounded British Airways and Kulula flights would be fully refunded. [ENCA]

• Stranded asset: Funder of the Medupi power station, the African Development Bank, says that the plant will not achieve a positive financial return over its lifetime. The Medupi build overshot its intended completion deadline by years, and ran billions of rands over budget, to such an extent that it is now a “stranded asset”, where it will never recover its cost through sale of the power it generates. ADB estimates that Eskom will make a R12.5 billion loss on the station. [News24]

• Mining insufficiency: The Minerals Council South Africa CEO says that as a result of insufficient spending on exploration, the country is not adding new sources to secure future minerals production, which poses a threat to the economy. He said that the lack of spending, partly due to the lack of mining policy certainty and long delays in providing licences, threatens the industry’s contributions to the broader economy. [BusinessLive]

• Ramaphosa charges: Former State Security Agency DG, Arthur Fraser has opened a criminal case against President Cyril Ramaphosa for allegedly concealing a multimillion-dollar robbery from the  SAPS and SARS. Fraser said that the suspects that entered Ramaphosa’s property in an attempted robbery were subsequently kidnapped, interrogated and paid off to keep silent by the President. Fraser himself has been heavily implicated in testimony at the State Capture Commission. [Daily Maverick]

• Markets: The South African rand steadied on Wednesday, supported by an upbeat manufacturing survey that helped it hold its ground against a stronger dollar on global markets.  The rand is currently trading at R15.61/$, R16.64/€ and R19.48/£. [Nasdaq]