Business

5 important things happening in South Africa today

Staff Writer

 ·25 Aug 2022

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

• Business as usual: It was largely business as usual on Wednesday as unions called for a mass shutdown of the economy to protest the rising cost of living. While many workers turned up for the Cosatu and Saftu-led strike action, most just went about their business. Protesters gave the government 14 days to meet its demands for economic interventions to stave off high living costs and threatened to continue protesting if the state did not follow through. [TimesLive, Daily Maverick]

• Basic income grant: While most analysts and economists have raised red flags over a basic income grant in South Africa, not everyone is as bearish about its prospects. Some analysts believe the grant will be a positive injection into the economy, stimulating economic activity and even feeding back some of the financing through VAT. An analyst has pegged the cost of the grant at R375 billion over three years – but says that 50% of this would be recovered by economic activity. [EWN]

• Price gouging: Questions are being asked about the status of the Competition Tribunal case against companies accused of excessive pricing of hand sanitiser – which is still pending after 18 months. The Special Investigating Unit handed its final report on the matter to President Cyril Ramaphosa in early July. Ramaphosa has not yet made that report public or even commented on it. Several companies were found to be overcharging government and government departments millions for hand sanitiser during the Covid-19 pandemic. [Daily Maverick]

• When it rains: Suspended public protector Busisiwe Mkhwebane has suffered another legal blow by the Constitutional Court in her ongoing litigation against the lawfulness of the inquiry set up to determine her fitness to hold office. The apex court found that there were no legal impediments to this inquiry continuing, and Mkhwebane was slapped with a personal cost order for abusing court processes. She is now taking the matter to the African Court. [ENCA]

• Markets: South Africa’s rand firmed on Wednesday after data showed consumer inflation accelerated in July, signalling the likelihood of domestic interest rate hikes. Headline consumer inflation quickened to 7.8% year on year in July from 7.4% in June, data from Statistics South Africa showed. Investec analyst Annabel Bishop said in a research note that the Reserve Bank could raise interest rates by at least 50 basis points next month. On Thursday, the rand was trading at R16.87/$, R16.86/€ and R19.96/£. Brent crude is trading at $102 a barrel. [Reuters]