5 important things happening in South Africa today

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

  • Gas bridge to Mozambique: Amid Stage 6 load shedding and calls for the president to declare an energy emergency, the government’s Central Energy Fund and Sasol is investing billions in opening a ‘gas bridge’ to Mozambique. This state-owned gas trader will source gas, initially from Mozambique, and import it via the existing Rompco pipeline. [News24]

  • Inflation: Financial markets were jittery ahead of the release of South Africa’s consumer inflation data on Wednesday morning, which is expected to show that the cost of living in South Africa has accelerated further. Higher inflation, combined with higher wage demands, will support the case for the Reserve Bank to hike interest rates again on Thursday. [IOL], [eNCA]

  • Disaster-prone: Underinvestment in water and electricity infrastructure makes South African towns and cities vulnerable to events such as floods and disruptions in these services can be a credit risk for some municipalities, Moody’s Investors Service said. Capital expenditure in most of the country’s municipalities that Moody’s rate is below the 10% to 20% of total spending recommended by the National Treasury to ensure that infrastructure needs are addressed. [Bloomberg]

  • Load shedding: Eskom has again warned that load shedding will continue for the foreseeable future until the power utility secures additional generation capacity. Eskom said it needs an additional 4,000MW – 6,000MW added to the grid, with no timeframe set for when the power outages will end. [EWN]

  • Markets: South Africa’s rand firmed on Tuesday, as the dollar fell due to cooling expectations for a full percentage-point Federal Reserve Bank interest rate hike next week. The rand is currently trading at R17.10/$, R17.52/€ and R20.57/£. Brent crude is priced at $106.9/barrel. [Reuters]

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5 important things happening in South Africa today