Government

5 important things happening in South Africa today

Luke Fraser

 ·21 Jul 2023

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

• Joburg explosion investigation continues: The City of Johannesburg says a preliminary investigation into the explosion in the CBD, which led to one confirmed death and close to 50 others injured, has provided three possible causes. City manager Floyd Brink said that the most likely cause was the ignition of methane gas in underground stormwater systems due to sewage ingress. He said that the ignition of natural gas and oxygen in underground stormwater drainage systems or service ducts or gas ignition from a gas pipe burst could have also caused the explosion. [Business Day]

• No BRICS currency: Anil Sooklal, South Africa’s Ambassador at Large to Asia and BRICS, says a new BRICS currency is not on the agenda for the bloc’s summit in Johannesburg next month. Sooklal said that there have also never been talks of BRICS currency, despite recent reports suggesting that the bloc is looking for a new currency to counter the supremacy of the US dollar. He added that the members will continue to deepen trading in local currencies and settlement in local currencies. [Reuters]

• Interest rate problem: Economist Dale McKinley says the decision to keep interest rates on hold will bring little to no relief for poor households in the country. Yesterday, 20 July, the Monetary Policy Committee (MPC) kept interest rates on hold, with many in the property sector welcoming the decision. Although McKinley said that the decision would bring relief to debtors paying off large loans, such as businesses and the middle and upper-middle classes, he said that they will do nothing for poor people in the country. [EWN]

• Chicken woes: The South African chicken industry says it feels deserted by the government over a lack of protection against the dumping of cheaper chicken products, primarily from Brazil. The producer price per kilogram in South Africa is currently at R30.50, whilst the landed cost of imports from Brazil amount to R9. Although the Trade Administration Commission recommended the implementation of anti-dumping duties, Minister of Trade, Industry and Competition Ebrahim Patel suspended the implementation for a year due to concerns over the possible impact on food prices. [Moneyweb]

• Markets: The rand weakened on Thursday afternoon after the MPC kept the repo rate at 8.25% following ten consecutive hikes. Despite the rand falling slightly, it is still below the R18.00/$ mark, with the currency seeing a strong comeback after being one of the worst-performing major currencies in the first half of 2023. On Friday (21 July), the rand was trading at R17.92/$, R19.96/€, and R23.08/£. Brent crude is trading at $80.29 a barrel. [Nasdaq]