What’s happening in and impacting South Africa right now is as follows:
Greylisting
Investors have been reassured by the justice minister Ronald Lamola that the South African government takes the risk of being greylisted seriously. The minister stated that the greylisting threatens to further entrench inequities in South Africa and make it more challenging for businesses to conduct business and make investments in the nation while addressing investors in Cape Town. Because it has not done enough to curb money laundering and illicit financial flows, nor has it taken action against those detected, South Africa risks being placed on a “grey list.”
Non-payment
Municipalities owe Eskom R50 billion as a result of failure to pay electricity bills, forcing the power company to once again enforce load shedding. 96 of South Africa’s 278 municipalities were indebted to Eskom as of July 31, 2022, with the Free State bearing the largest cost at R16.7 billion. Eskom is owed R6.7 billion by the Free State municipality of Maluti-a-Phofung alone.
Markets
Tuesday saw a decline in the rand as a result of the dollar strengthening due to stronger-than-anticipated US inflation data, which suggests that the Federal Reserve may need to continue hiking interest rates aggressively. Unexpectedly, US consumer prices increased in August, and underlying inflation increased along with rising rent and healthcare costs. The Fed will meet the next week to decide on interest rates, and traders anticipate a 75 basis point increase. The rand was trading at R17.41/$, R17.38/€, and R20.03/£ on Wednesday. The current price of a barrel of Brent crude is $93.
Two-pot system
By the two-pot retirement system’s anticipated start date of March 2023, the retirement industry claims it will not be prepared to accept new regulations. Members would get early access to a portion of their retirement savings due to the scheme. The Association for Savings and Investment SA, however, estimated that the system wouldn’t be operational for at least 18 months after the final regulations were gazetted. Currently, public hearings into the system are being held.
MP threatened
After threatening MPs in parliaments, tainted public protector Busisiwe Mkhwebane’s litigator, Dali Mpofu, may soon be subject to independent investigations and sanctions. You will regret
