Government

5 important things happening in South Africa today

Staff Writer

 ·24 Oct 2023

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

• Private firms provide for Eskom: Eskom has managed to approve the procurement of more than 1,100MW from private companies, including mines, that have excess generation capacity. The power is being procured via the standard offer programme, which was launched in September 2022 as part of plans to bring more megawatts onto the grid to help end load-shedding. Once added to the grid, the 1,100MW will be enough to prevent one full stage of load-shedding. [BusinessDay]

• Transnet calls on exporters to pay: High-placed sources at three of South Africa’s largest coal exporting companies confirmed that groups dependent on rail coal exports to Richards Bay were called on by Transnet to each contribute several hundred million rand to help settle matters with the China Railway Rolling Stock Corporation (CRRC). The funds will help settle monies owed to the supplier and unlock the delivery of new locomotives. [News24]

• Investment exit: Foreign and local investors are flooding out of South Africa, with the country experiencing investment outflows every year since 2017 and over R100 billion worth of local equities having been dumped so far this year. This was revealed in the South African Reserve Bank’s (SARB) Monetary Policy Review, a bi-annual report detailing the economic data it uses to inform its monetary policy decisions. [Daily Investor]

• Plans to spend millions on music awards: ActionSA wants President Cyril Ramaphosa to stop plans by the KwaZulu-Natal ANC-led provincial government and the City of eThekwini to spend R53 million on the SA Music Awards (Samas). ActionSA argued that R28 million was diverted funds from other crucial programmes that lacked fiscal justification, while eThekwini municipality mayor, Mr Mxolisi Kaunda, has unilaterally committed an additional R25 million to host the Samas without obtaining prior council approval. [Times Live]

• Markets:  The South African rand strengthened on Monday, with analysts saying global drivers, including the Israel-Hamas conflict and U.S. economic data, were likely to set the tone for trading this week. On Tuesday (24 October), the rand was trading at R18.91 to the dollar, R23.19 to the pound and R20.19 to the euro. Oil is trading at $90.27 a barrel. [Reuters]