Government

5 important things happening in South Africa today

Staff Writer

 ·2 Oct 2023

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

• Signs of economic stress: Johannesburg has fallen from 69 to 83 on the Global Financial Centres Index, a sharp decline in its reputation as a top financial centre. Cape Town’s standing dropped from 73 to 91. The index is compiled every six months by London-based think tank Z/Yen and the China Development Institute. The index ranks 121 cities according to surveys of 147 factors, including the state of the local business environment, human capital, infrastructure, financial sector development, and reputation. [Daily Investor]

• Lacklustre load shedding optimism: Ramakgopa was quick to announce during his Sunday briefing that South Africa was beginning to “turn the corner” in dealing with load shedding following the return of Kusile unit 3. However, not so long ago, he delivered similar news about how Eskom had done a great job in not subjecting the country to higher stages of load-shedding during winter. But barely 48 hours since Ramokgopa spoke, the country was plunged into stage 6 load-shedding, with several units at various power stations breaking down almost simultaneously. The fact remains that we are still largely reliant on Eskom’s old and unreliable coal fleet, which could break down at any time. [TimesLive]

• Medical savings warning: Discovery Health announced that four in every 10 scheme members (39%) will experience an increase in contributions of less than 4% from January 2024. However, it is also said that to achieve the sub-4% increases for some plans, it has cut the allocation to the medical savings account (MSA) from the net contribution paid by five percentage points. This means, for example, that for a main member on the Classic Saver, their MSA will drop from R12,180 this year to R10,020 next year. [Moneyweb]

• More Corruption: Transnet has fired two executives over a R33.8 million contract for thousands of disposable straws – with prices inflated from 28 cents to R29 per unit. This amounts to a nearly 10,000% markup. The SIU launched an investigation into the matter after receiving complaints from a Transnet whistleblower. [News24]

• Markets: The South African rand remained steady on Friday, little affected by statistics agency data released earlier on Thursday, which showed South Africa’s producer inflation quickened to 4.3% year-on-year in August and that the country recorded an uptick in foreign direct investment inflows. On Monday (02 September), the rand was trading at R18.94/$, R20.02/€, and R23.09/£. Brent crude is trading at $92.37 a barrel. [Reuters]