5 important things happening in South Africa today

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

Eggs in multiple baskets: In an address to the nation on Sunday evening, Ramaphosa said the country was committed to a policy of geopolitical non-alignment. This means that SA would not be drawn into a contest between global powers. “We [SA] need to seek strategic partnerships with other countries rather than be dominated by any other country. While some of our detractors prefer overt support for their political and ideological choices, we will not be drawn into a contest between global powers. Instead, our country strives to work with all countries for global peace and development,” said Ramaphosa. [TimesLive]

Eskom’s municipal problem: Municipalities now owe Eskom a substantial R63.2 billion, up R4.7 billion from a year ago. Electricity minister Kgosientsho Ramokgopa says this is eroding Eskom’s bottom line and reducing the power utility’s ability to invest in the infrastructure needed to solve the electricity crisis. [Business Day]

Diesel locomotives: Transnet CEO Portia Derby said the company is considering switching to diesel-powered locomotives to avoid trains getting stuck when electric cables go missing. She noted more than 1,500km of cable were stolen from the company in 4,826 incidents last year. Derby called on authorities to step up security urgently to protect South Africa’s exports. [News24]

Eskom slowly dying: Some of South Africa’s biggest industries – such as agriculture – are going completely off-grid as they cannot survive without reliable power. Theo de Jager, executive director at Southern African Agri Initiative (SAAI) and founder of Son SA, said Eskom is going the same route as the SA Post Office, where people are finding alternatives to stop using their service. He added that those who have not made a plan are working to produce their own power, kissing Eskom goodbye. Economist Dawie Roodt agreed, noting that the transmission part will remain, and the rest of Eskom will just slowly die and come to an end. [Daily Investor]

Markets: The South African rand strengthened on Friday, ahead of monthly inflation data and a BRICS summit of emerging economies in Johannesburg this week. However, the rand is down roughly 6% this month, with Rand Merchant Bank analysts saying local markets were “almost a passenger at the moment,” with global factors holding sway. On Monday (21 August), the rand was trading at R18.98/USD, R20.66/EUR and R24.18/GBP. Oil is trading at $85.34 a barrel. (Reuters)