5 important things happening in South Africa today

Here’s what is happening in and affecting South Africa today:

• Withdraw medical scheme increases: The Council for Medical Schemes (CMS) acting registrar Zongezile Baloyi wrote to some of SA’s biggest open medical schemes, including Discovery Health Medical Scheme, Bonitas, Momentum, Bestmed and Medihelp, accusing them of undermining the authority of the regulator and ordering them to withdraw their contribution increases product announcements for 2024. For the past two decades, they have consistently publicised their plans for the following year in September to give consumers, brokers and employers time to consider the various offerings on the market before changes take effect in January. [Business Day]

• Fuel crisis looms: South Africa is faced with a “looming crisis” as demand for fuel is expected to keep rising and its refining capacity remains severely constrained. With only half of refineries in South Africa operational, SA has become reliant on imports for refined fuel products. According to the Central Energy Fund, the limited refining capacity paints a “concerning picture”. [News24]

• Transnet privatisation: The South African presidency has a plan to reverse the collapse of a state-run ports and freight-rail sector that’s cost the economy at least R500 billion since 2010: hand over most of the responsibility for fixing it to the private sector. The plan is encapsulated in a 124-page Roadmap for the Freight Logistics System in South Africa. [BusinessTech]

• Tshwane’s financial skeleton: Tshwane’s ongoing municipal strike is due to debt, and administrators won’t increase workers’ salaries. However, the city has lost R77 million to theft, and none of it has been recovered. The funds were looted from the city’s community safety department through a BEE fronting scheme and used to fund the lavish lifestyle of former senior official and convicted fraudster. [TimesLive]

• Markets: The Rand increased on Wednesday as risk-off sentiment pushed U.S. Treasury yields down. The rand’s improvements this week “could be read as a surprising move, given the events taking place in the Middle East, which would usually add pressure on currencies such as the ZAR,” said ETM Analytics’ Bheki Mahlobo. On Thursday (12 October), the rand was trading at R18.81/$, R20.00/€, and R23.18/£. Brent crude is trading at $85.61 a barrel. [Reuters]