Here’s what is happening in and affecting South Africa today:
- Gordhan told him to: Former Eskom chairperson Malegupuru Makgoba says Public Enterprises Minister Pravin Gordhan told Former Eskom CEO Andre de Ruyter to gather intelligence on crime at the embattled power utility due to the slow pace of the SAPS and Hawks. De Ruyter was previously grilled by Scopa over an alleged ‘illegal’ investigation into corruption at Eskom. Gordhan is set to appear before Scopa next week after he returns from a trip to China. [News24]
- SA’s mining problem: The latest Fraser Institute Investment Attractiveness Index says South Africa is sinking as a mining investment destination. In 2022, South Africa dropped to 57th out of the 62 counties measured by the Fraser Institute. This marks a significant decline from 2018, when South Africa was ranked halfway out of 83 jurisdictions. The issues which probably caused a drop in South Africa’s ratings include poor infrastructure, political instability and debated land claims. [Moneyweb]
- Discovery’s challenge: Discovery wants to launch a low-cost health insurance product with a R300 to R350 per month premium, but the Council for Medical Schemes (CMS) seems to be blocking all low-cost medical schemes. The Board of Healthcare Funders (BHF), which represents Discovery and other medical aids, said that the slow pace was due to political interference, as the government wants to push through the National Health Insurance (NHI) scheme. [Business Day]
- Potential new divorce laws: The Constitutional Court has reserved its judgement on a potentially massive challenge to the Divorce Act. The challenge looks at a section of the act which prevents someone married out of the community of property without accrual from claiming from their spouse’s estate in the event of a divorce; however, this does not apply to marriages pre-1984. The Pretoria High Court previously said that the cut-off date was unconstitutional and approached the Constitutional Court for confirmation. [EWN]
- Markets: The South African rand plunged to a three-year low on Wednesday after a steep drop in the previous day, while international and domestic government bonds also fell as fears grew over the possible worsening of load shedding over winter. ETM Analytics said that misleading headlines on Tuesday had sparked the market rout by giving “the impression that [Eskom] was losing control of the grid”. On Thursday (11 May), the rand was trading at R18.86/$, R20.70/€, and R23.80/£. Brent crude is trading at $77.00 a barrel. [Nasdaq]
