Wealth

5 important things happening in South Africa today

Luke Fraser

 ·6 Jul 2023

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

• Emigration concerns: Stanlib CEO Derrick Msibi says the emigration of wealthy individuals will see asset managers face more headwinds than tailwinds in the next two or three years. Msibi said that pensions pools have seen muted returns due to the emigration of high-net-worth individuals, increasing job losses and minimal economic growth. He added that the running of firms is outstripping inflation as technology costs, such as desktop terminals from Bloomberg and Reuters, increase significantly. [Business Day]

• Social media will help with elections: The Electoral Commission (IEC) is partnering with several technology companies, including Google, TikTok and Media Monitoring Africa, in a bid to prevent disinformation ahead of the 2024 general elections. The IEC said that digital media, especially social media, has seen a significant uptick in instances of disinformation over the last few years and could undermine credible elections if left unchecked. [Sowetan]

• Boksburg gas leak: 16 people have died following a gas leak at the Angelo informal settlement in Boksburg, Gauteng on Wednesday night. Another 16 people are currently in hospital, with 11 in serious condition and four in serious condition. Ekurhuleni Disaster and Emergency Management Services spokesperson William Ntladi alleged that the poisoning was due to a nitrate oxide leak from a cylinder which was used for illegal mining activities. [News24]

• Cosatu strike: Cosatu and its affiliated unions are embarking on a nationwide strike today. The unions are protesting against the country’s high levels of unemployment, high interest rates, load shedding, water shortages and inequality. Cosatu said that these are forcing workers into debt, with the government and private sector doing nothing to help these workers. [eNCA]

• Markets: The rand weakened against a stronger dollar on Wednesday as traders awaited minutes from the U.S. Fed’s June policy meeting for hints on the interest rates outlook. Fed policymakers left the policy rate untouched last month but signalled they may raise interest rates at least two more times by the end of the year. On Thursday (6 July), the rand was trading at R18.78/$, R20.37/€, and R23.87/£. Brent crude is trading at $76.29 a barrel. [Nasdaq]