5 important things happening in South Africa today
Here’s what is happening in and affecting South Africa today:
SA’s wage problem: Provinces are projecting to overspend their 2023/24 budgets by a total of R24.8 billion, mainly due to the implementation of the wage agreement reached between the government and public sector trade unions. The wage agreement provided for a 7.5% increase from April 1 at an unbudgeted cost to the government of R37.4 billion. [Business Day]
SA’s energy own goal: Just a few years ago, the government – led by Zuma – had tried to push through a 9.6GW nuclear project that never got off the ground. “The reality is that I think in the previous project of nuclear – we did mess up in the 9600MW nuclear project. We were found wanting in developing it systematically at a pace and rate that we can afford,” Energy Minister Gwede Mantashe said. One of the reasons the project was ruled unlawful was because it did not follow democratic processes such as holding public consultations.[News24]
Jobs cuts it Takealot subsidiary: Takealot-subsidiary Superbalist has issued staff with Section 189 notices as part of a retrenchment process. “Like many other businesses, we are faced with the reality that growth post-Covid has not reached the levels that had been forecast,” it told Daily Investor. “As such, we need to reevaluate our structures to ensure that the business operates effectively in this current economic environment.” [Daily Investor]
DA coalition doubts: Seven parties, including the DA, ActionSA, IFP and the Freedom Front Plus, have signed a pre-elections agreement to work together should the ANC fail to reach a 50+1 majority at the general polls next year. However, political analysts are simply not convinced that the DA and its coalition partners would be able to secure more than 50% support from the electorate, as South Africans might not be receptive to the idea of voting with a coalition government in mind. [EWN]
Markets: The South African rand remained steady on Thursday after edging higher on Wednesday, reversing some of the losses incurred after its biggest trading partner China cut key policy rates. On Friday (18 August), the rand was trading at R19.08/USD, R20.76/EUR and R24.31/GBP. Oil is trading at $84.05 a barrel. (Reuters)
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