Government

5 important things happening in South Africa today

Luke Fraser

 ·7 Jun 2023

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

• SAA bailouts are over: South African Airways interim CEO John Lamola says the entity will no longer receive government bailouts. Lamola noted that the embattled airline was able to generate R5 billion over the last financial year, allowing it to make a profit. However, he maintains that the entity needs a new equity partner, Takatso Aviation, to help it expand. Over the last five financial years, SAA received over R37 billion rand in bailouts. [Moneyweb, BusinessTech]

• Questionable security deal: The Western Cape Department of Infrastructure has awarded an over R280 million contract to a security company founded by a controversial ANC-linked businessman, who was highly linked to state capture. Western Cape Premier Alan Winde said he is outraged by the province doing business with alleged criminals. However, the premier said the provincial government could not bar companies from working with the province unless the national Treasury blacklists them. [Daily Maverick]

• Independent issue: A new legislative amendment proposed by the Electoral Commission of South Africa (IEC) may make it harder for independent candidates running for a seat in parliament, as voters outside of the province where they are registered to vote and those living abroad will not be able to vote for them during next year’s election. As per the amendment, voters in different locations will not be entitled to the new ballot for the regional seats, which the controversial new Electoral Amendment Act introduced. [News24]

• University cheats: University of South Africa (Unisa) is struggling to deal with the rising number of cheating cases during exam season. Following the switch to online exams in 2020, students said that it is far easier to cheat on their exams, with one tutor admitting to helping students with their assignments. Last month, an independent investigation into the university said that the university should be placed in full administration, citing academic fraud as a primary concern. [EWN]

• Markets: The South African rand and stocks rose in afternoon trade on Tuesday (6 June) after the country’s gross domestic product (GDP) figures showed marginal growth in the first quarter. Data showed South Africa narrowly avoided a recession in the first quarter, with manufacturing and finance holding up relatively well despite crippling power cuts. On Wednesday (7 June), the rand was trading at R19.24/$, R20.57/€, and R23.91/£. Brent crude is trading at $75.73 a barrel. [Nasdaq]