Business

5 important things happening in South Africa today

Staff Writer

 ·15 Aug 2022

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

• Electricity prices: Eskom has warned of massive electricity price increases for consumers if energy regulator Nersa moves ahead with its proposed methodology changes. The proposal is for households to pay a tariff reflective of how much it costs to produce that electricity from the power stations it is drawn from. However, Eskom warned that there are currently cross-subsidies in place where heavy power users subsidise the costs for lower users. Removing these would result in a massive increase, as tariffs do not reflect the cost of production. [News24]

• Unexplained wealth: The South African Revenue Service and other investigating authorities are calling for new legislation to assist them in clamping down on ‘unexplained wealth’ in the country. SARS recently beefed up its investigative capacity to go after wealthy taxpayers in South Africa. Part of the push is to determine the sources of their wealth and ensure they are paying their dues. Unexplained wealth is the possession of assets with a value far above a person’s declared income. [BusinessLive]

• VIP protection: South African police unions say that VIP protection services are being exploited, as they threaten strike action that could leave ministers and other persons of interest without security. The unions are at loggerheads with the SAPS over the payment of overtime and travel allowances for more than 1,100 VIP protection personnel in all nine provinces. More than two dozen cases have reportedly been submitted to the CCMA. [ENCA]

• No majority: A new Ipsos poll shows that if an election were held tomorrow, the ANC would lose its majority in South Africa, securing only 42% of the vote. The DA follows this with 11%, the EFF with 9%, and ActionSA with 3%. According to follow-up interviews with respondents, Ipsos found that the ANC’s lower performance boils down to uncertainty over the party’s leadership, with questions hanging over the elective conference in December. Respondents feel there are two ANCs and are unsure which will be the version contesting the 2024 election. [Daily Maverick]

• Markets: The South African rand benefitted from the subdued dollar and the risk rally last week, appreciating sharply towards R16.20/$ on Friday – its highest level since 28 June – after reaching a high of R16.11/$ during trade on Thursday. However, the local currency remains at the mercy of the broader global environment, and any shift in sentiment will see the rand tumble again. On Monday, the rand was trading at R16.25/$, R16.64/€ and R19.68/£. Brent crude is trading at $97 a barrel. [Citadel]