5 important things happening in South Africa today

Coronavirus: In South Africa, there have been 1,151 new cases of Covid-19, taking the total reported to 3,659,698. Deaths have reached 98,804 (+137), while recoveries have climbed to 3,524,402 leaving the country with a balance of 36,492 active cases and a recovery rate of 96.3%. A total of 31,039,221 vaccines have been administered.

  • Electricity tariffs: Energy regulator Nersa will on Thursday decide what tariff hikes Eskom is entitled to and how this will be calculated. South African consumers may be spared the full 20.5% electricity tariff increase that Eskom has requested if, as suggested, the regulator adjusts the utility’s approved revenue in line with the poor technical performance of its generation fleet. The threat of much higher electricity prices comes as other energy costs, such as fuel, are expected to increase in the coming months and amid rising inflation. Electricity price hikes will come into effect in April. [Moneyweb]
  • Alcohol taxes: SA Breweries has joined calls from the South African liquor industry to nix tax hikes for alcohol when finance minister Enoch Godongwana delivers his budget speech on Wednesday. SAB says that any increases should be in line with inflation, which would give small businesses in the sector some relief after two years of lockdown, several alcohol bans, and other pressures. The National Liquor Traders Association has called for a zero-percent increase. Meanwhile, the South African Alcohol Policy Association has called for the opposite, saying Godongwana should increase taxes so that prices act as a deterrent to alcohol consumption. [Mail & Guardian]
  • Bailout: Embattled airline SAA is set to receive the next part of its multi-billion rand government bailout, with public enterprises minister Pravin Gordhan saying the group will get R3.5 billion in the coming financial year. Gordhan stressed that this is not a new bailout but part of the R14 billion promised by the government years ago. SAA is being taken over by equity partner Takatso Consortium, with the intent to ultimately remove its dependence on government bailouts. Despite receiving billions of rands in bailouts over the last decade, insiders say the airline is still not running profitably. [BusinessLive, 702]
  • Magschool trial: Suspended ANC secretary-general Ace Magashule is in court this week alongside his co-accused for the pre-trial hearings related to the Free State asbestos scandal and a separate application to have corruption charges dropped altogether. Events in court have indicated the difficulty of converting the Zondo Commission evidence into a successful case for State Capture prosecutions. State prosecutors told the court that the ‘enormity’ of the case was about a corruption scandal that saw R255 million in public money blown on irregular contracts to audit the use of asbestos in Free State housing projects. [DailyMaverick]
  • Markets: The South African rand was relatively steady on Monday despite global markets being shaken by increased worries that Russia will invade Ukraine. The rand has been resilient with high real domestic yields, strong terms of trade and fresh reform pledges from Cyril Rhamaposa in its favour. The rand is currently trading at R15.18/$, R17.15/€ and R20.63/£. [Nasdaq]

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