Here’s what is happening in and affecting South Africa today:
- SA bank placed under curatorship: Habib Overseas Bank has been placed under curatorship by Finance Minister Enoch Godongwana to deal with governance failures and protect the bank’s depositors. The minister made the decision after a recommendation from the SARB’s Prudential Authority (PA). The SARB said the bank was defying financial sector regulations, such as stringent exchange control rules. [News24]
- Joburg rate increase: Johannesburg residents could see an above-inflation rise in the cost of municipal services from 1 July. According to a draft medium-term budget tabled in the city council, the tariffs for most main services – excluding property – will rise by a rate equal to or greater than inflation, currently at 7%. Although the increase in property rates is only 5.3%, it follows a new general valuation roll valued at 12% more. [Moneyweb]
- Prison contract criticised: The Police and Prisons Civil Rights Union (Popcru) is calling on the Department of Justice and Correction Services to stop its 25-year deal with G4S for the running of Manguang Prison. This follows the widely reported escape of Thabo Bester, who was believed to have died in a prison fire. The contract is expected to last until 2026, with the government understood to be paying R1 billion a year to G4S to run the Manguang prison and another prison in Limpopo. [EWN]
- Union approaches Concours: The SA Municipal Workers’ Union (Samwu) will approach the constitutional court to challenge The Municipal Systems Amendment Act – signed into law by President Cyril Ramaphosa in 2022 – which bars municipal workers from holding political party positions at branch, regional, provincial or national level. Samwu said that the legislation contravenes clauses in the bill of rights, which state that every citizen is free to participate in a political party’s activities. [BusinessDay]
- Markets: South Africa’s rand weakened against a stronger dollar on Monday, as investors awaited a central bank decision on monetary policy later this week. The SARB will announce its rate decision on Thursday, with markets expecting a 25-basis-point hike. On Tuesday (28 March), the rand was trading at R18.25/$, R19.73/€, and R22.48/£. Brent crude is trading at $77.70 a barrel. [Nasdaq]
