Here’s what is happening in and affecting South Africa today :
- R170 billion gamble: Eskom wants to invest R170 billion over the next five years maintaining and repairing its ageing coal fleet – however, critics have called this a massive gamble, as R144 billion has been spent on the same plan over the last five years and the fleet has only deteriorated further. Even if everything goes well and there are no bumps along the way, the plan would only restore energy availability to 66% by 2025. It has been argued that the money would be better spent on new energy sources. [Daily Maverick]
- National shutdown: More than 800,000 public sector workers are preparing to down tools and strike nationally in South Africa following a breakdown in wage negotiations with the government. Strike certificates have been issued to several unions representing health, education, police and other public servants. If the strikes move ahead, they threaten to shut down vital public services and may also disrupt matric exams. [BusinessLive]
- Tough times ahead: Stanlib economist Kevin Lings says that South Africans are in for a rough six months, with more interest rate hikes coming amid persistently high inflation. The economist said the next year will be difficult on consumers, but the next three to six months will be tougher. Inflation will stay high, interest rates will stay high, and economies will come under more pressure, he said. [News24]
- Policing problems: South Africa’s police recruitment cannot keep up with a swelling population, and budget cuts mean that the SAPS does not have the resources available to meet the challenge. More than a decade ago, there were 150,000 police officers to watch over a population of 50 million. Today, there are fewer officers – 140,000 – to handle a population of 60 million. And while there are new recruits, the numbers do not make up for the officers lost each year to retirement. [Mail & Guardian]
- Markets: The South African rand strengthened on Tuesday, as the dollar retreated ahead of the Federal Reserve’s meeting, with investors focusing on the idea the US central bank could shift to a less-aggressive policy narrative. Investors widely expect the Fed this week to raise its benchmark overnight interest rate by 75 basis points. On Wednesday, the rand was trading at R18.09/$, R17.91/€ and R20.86/£. Brent crude is trading at $96 a barrel. [Reuters]
Source : BusinessTech 11/02/2022