Here’s what is happening in and affecting South Africa today:
- NHI challenge: Parliament’s portfolio committee on health’s decision to go ahead with the National Health Insurance Bill with minimal amendments will likely lead to a series of legal challenges. Discovery Health CEO Ryan Noach said that the portfolio committee did not consider amendments to the bill that would improve its feasibility and effectiveness, despite detailed input from stakeholders. He said this will result in a series of litigation challenges, including those on constitutional grounds. [Business Day]
- Interest rate pain: SA Federation of Trade Unions (SAFTU) and the General Industries Workers Union of SA (Giwusa) say the South African Reserve Bank’s (SARB’s) decision to hike interest rates will severely impact the lives of poor people. SAFTU’s Zwelinzima Vavi said that interest rate hikes send thousands, if not millions, of workers into poverty. Giwusa’s Mametlwe Sebei added that the interest rate hikes will hurt 26 million people active in the credit market and the millions of others who use loan sharks. [City Press]
- Free State Cholera: The Free State Department of Health says residents across the province should treat the water as high risk. This follows the province confirming eight cases of cholera and one death – pushing the confirmed death toll in Gauteng and the Free State to 22. With cases on the rise, the department said that all residents should practice proper hand hygiene. The outbreak was first detected in Hammanskraal, Gauteng, last week. [EWN]
- Coalition hopes: Deputy President Paul Mashatile says the government will hold a national dialogue on coalition governments before drafting coalition legislation. Although the South African Local Government Association has developed a coalition framework, Mashatile said it had several weaknesses. Recent polls from the ANC showed that it will likely lose its majority in the 2024 national elections, with it likely to enter into a coalition government. [News24]
- Markets: The South African rand went into a surprise free fall on Thursday as the central bank raised its benchmark lending rate by 50 basis points, as it strives to stem sticky food inflation and prop up a bruised currency. The SARB raised the repo rate to 8.25%, its 10th consecutive hike in a row, taking it to a 14-year high as it scrambles to tame inflation. On Friday (26 May), the rand was trading at R19.76/$, R21.21/€, and R24.36/£. Brent crude is trading at $75.91 a barrel. [Nasdaq]
