Business

5 important things happening in South Africa today

Staff Writer

 ·27 Jul 2022

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

• Alarm bells: The Reserve Bank’s Prudential Authority has warned that South Africa’s largest banks are at risk of running afoul of international money laundering and terrorism financing rules, having found local bank exposure to these activities between 2018 and 2020. South Africa is already at risk of being placed on the global “grey list”, which could see the country excluded from international finance markets. [BusinessLive]

• IBIWISI: Reaction to president Cyril Ramaphosa’s energy plan to end load shedding in South Africa has been widely approving of what the president is saying – however, it has not come without a degree of cynicism. Unions, in particular, have noted that the country has heard similar promises from the government before, with little in the way of actual delivery. Analysts and businesses have also called for a definitive plan with deadlines for which officials can be held accountable. [EWN]

• Wage talks: Public sector unions have lowered their demand for wage increases from 10% to 6.5%. This was in response to the government’s counter-offer of 4.5% to the initial demand. Unions representing 1.3 million public servants are hoping to reach an agreement with the government after negotiations deadlocked. The state says it simply cannot afford double-digit increases. While strike action has been threatened, negotiations are uncharacteristically calm. [Daily Maverick]

• Policy preview: Tourism Minister Lindiwe Sisulu has given a preview of what the ANC social transformation committee – which she chairs – will propose at this weekend’s ANC policy conference. She said the committee supports extending the R350 social relief distress grant and covering more people in a de facto basic income grant; provision of land for housing; 50/50 black/white representation in schools; and chemical castration for repeat sexual offenders. [TimesLive, Daily Maverick]

• Markets: As markets gear up for Wednesday’s US interest rate decision, the dollar is sitting firmly near recent peak levels. The euro also held its own, rising 0.21% to $1.02, but gains were capped by uncertainty over Europe’s energy security. The rand has held its ground under R17.00 to the dollar, waiting with the rest of the markets for news from the Fed. On Wednesday, the rand was trading at R16.88/$, R17.15/€ and R20.37/£. Brent crude is trading at $104 a barrel.