Government

5 important things happening in South Africa today

Luke Fraser

 ·29 Jun 2023

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

• Pick a side: Russia’s ambassador to South Africa Ilya Igorevich Rogachev says South Africa must pick a side regarding the Russia and Ukraine war, adding that the geopolitical environment is not conducive to South Africa’s non-aligned stance. Rogachev said it is impossible to remain neutral, as neutral countries are given secondary sanctions, with the West adopting a “with us or against us” stance. Several financial experts, including FNB CEO Jacques Celliers, have also warned that South Africa’s continued friction with the West could result in sanctions. [Business Day]

• Boost for meat prices: Pick n Pay has reached an agreement to buy meat group Tomis for R340 million – subject to regulatory approvals. Tomis is a meat processing and packaging business which supplies lamb, beef and other meat products. Pick n Pay said that the transaction will reduce the cost of meat while also offering reliable supply. The group added that meat is a key product for the group. [News24]

• BMW going electric: BMW South Africa will invest R4.2 billion over the next five years to improve its electro-mobility capabilities at its manufacturing plant in Rosslyn, Pretoria. BMW’s Dr Milan Nedeljkovíc said that the next generation BMW X3 – a plug-in hybrid – will be manufactured at the plant in the second half of 2024, with the plant also producing internal combustion engine (ICE) derivatives of the car. BMW said that the new investment will support 20,000 people working directly or indirectly in the group’s South African operations. [Moneyweb]

• Big win for immigrants: Home Affairs Minister Aaron Motsoaledi’s decision to scrap the Zimbabwean Exemption Permit (ZEP) has been declared unconstitutional by the Pretoria High Court. It was ruled that the minister did not follow proper consultation processes, with the first call for representations done after the decision was effectively reached. The ZEP – which affects nearly 180,000 Zimbabweans in South Africa – will remain valid until June 2024, and Motsoaledi will have to reconsider the issue using the correct procedures. [Ground Up]

• Markets: The South African rand weakened on Wednesday as the U.S. dollar strengthened. Many market participants will turn their attention to a policy panel discussion later this week of five central bank governors, including the U.S. Fed’s Jerome Powell, with the rand highly sensitive to shifts in global market sentiments. On Thursday (29 June), the rand was trading at R18.69/$, R20.36/€, and R23.59/£. Brent crude is trading at $73.59 a barrel. [Nasdaq]