5 important things happening in South Africa today

 ·6 Jun 2022

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

  • Eskom talks: Andre de Ruyter, the chief executive officer of Eskom, has invited local and international energy experts to an “electricity crisis roundtable” later this month. Eskom plans to present a proposal developed and approved by its board, marking the first in a series of events that will include engagement with intensive users and funders. The meetings come as the power utility faces growing strain on its systems, and on the back of increased load shedding in the country. [Moneyweb]

  • Fund exodus: Two of South Africa’s largest financial services firms warn that changes to the asset allocation limits of local pension funds could see roughly R600 billion – R800 billion in outflows from the country. Finance minister Enoch Godongwana announced in his 2022 budget speech that amendments to regulation 28 of the Pensions Funds Act would allow retirement savings funds to invest 45% of assets offshore. [BusinessLive].

  • No relief: The Department of Social Development says that definition changes in South Africa’s grant disbursements mean that individuals or households who receive monetary support from friends or family will not qualify for the R350 social relief of distress grant. The department only budgeted for 10.5 million beneficiaries for the grant, but is aware of 13.6 million people are classified as not economically active. The new definition in the regulations includes all forms of income, including support from family members. [News24]

  • Pleading innocence:  President Cyril Ramaphosa, without revealing any details, addressed allegations levelled against him by former spy boss Arthur Fraser that he concealed the theft of a large undisclosed sum of US dollars on his farm in 2020. The president pleaded innocence in the matter, claiming that the charges are a political ploy to smear him. With many questions still lingering around the claims, the president maintains that he has not stolen public funds. [Daily Maverick]

  • Markets:  Global oil prices firmed after Saudi Arabia raised prices sharply for its crude sales in July, indicating a tight supply even after OPEC agreed to accelerate its output increases over the next two months. Economists note that planned supply increases from OPEC might fall short of demand growth expectations. The rand is currently trading at R15.47/$, R16.61/€ and R19.35/£. [Nasdaq]
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