Here’s what is happening in and affecting South Africa today:
- Eskom court warning: The South African Independent Power Producers Association (Saippa) says Eskom’s attempts to stop the town of Frankfort in the Free State from producing its own electricity is characteristic of the ANC government’s centralist approach and is prepared to take the matter to the constitutional court if the need arises. Saippa chair Tommy Garner said that if Eskom’s argument wins, then all investment into independent power projects by the private sector and municipalities will stop. [Moneyweb]
- Optimism prevails: Anglo American CEO Duncan Wanblad says three issues must be prioritised to help fix South Africa: the energy crisis, logistics problems, and crime and corruption. However, he remains optimistic about the progress seen over the last few weeks by President Cyril Rampahosa. The President has recently met with Transet’s management, business and labour. Moreover, he is set to announce a joint crisis initiative at his fifth investment conference. [News24]
- Solar warning: Standard Bank says the cost of installing solar is roughly R170,000 based on 250 consumers who have bought solar on its platforms. The bank said that 80% of the solar installation cost is usually funded by customers extending their home loans, with the balance financed by either unsecured loans or savings. However, the bank warned that extending one’s mortgage to fund solar installations is not the best use of credit due to the interest incurred over a long mortgage repayment period. [Business Day]
- Coalition drama: Political analyst, Rebone Tau, says that the ANC and the EFF need to control their municipal coalition governments, with suggestions that some Gauteng municipalities aren’t being regulated to prevent internal disputes between relevant parties. For instance, the Patriotic Alliance, a key player in Johannesburg’s coalition, is no longer endorsing executive mayor Thapelo Amad. Tau added that a well-regulated coalition would never endorse Amad or former Tshwane mayor Murunwa Makwarela for Mayoral positions. [EWN]
- Markets: The South African rand gained modestly on Wednesday as the dollar fell globally on data showing cooler-than-expected US headline inflation in March. Despite the 0.1% increase being smaller than predicted, economists said that underlying inflation pressures mean the Federal Reserve will probably still raise interest rates again next month. On Thursday (13 April), the rand was trading at R18.40/$, R20.22/€, and R22.98/£. Brent crude is trading at $87.01 a barrel. [Nasdaq]
