5 important things happening in South Africa today

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

• Eskom’s new problem: Eskom’s grid is under increasing pressure with the rapid rise in electricity generation from private companies and households. It pushes some of their transmission lines to run at peak capacity, which may result in failure. South Africa is experiencing a boom in solar installations, with over 4,400 MW of rooftop solar installed outside of the government-procured solar. This is expected to increase by 420% by 2030. [Daily Investor]

• SARB probes PayShap fees: The Reserve Bank said pricing is technically outside of its mandate, so it has asked the Competition Commission to look into the fees banks are charging for PayShap. “The SARB is aware of concerns regarding the costing of PayShap and agrees that the current pricing, by some banks, could hinder its adoption and lead to future price gouging,” it said. [News24]

• Municipal debt crisis: Debt owed by municipalities to Eskom has escalated by about R4 billion in the current financial year and now stands at about R64 billion, electricity minister Kgosientsho Ramokgopa told the media on Monday. “There is no sign of that increase abating anytime soon,” he said. Eskom has previously noted debt owed by municipalities could increase to R68 billion by the end of March 2024 unless there is an intervention by the state. [Business Day]

• Service delivery stress: South Africa’s population has increased from 51.7 million in 2011 to 62 million in 2022, and the government is increasingly finding it difficult to provide basic services. Although more households now have access to piped water, electricity, and ablutions, the services being provided are not reliable as infrastructure deteriorates with the increased number of people being serviced. [Daily Maverick]

• Markets: The rand jumped over 1% on Tuesday against a weaker dollar due to improved risk sentiment and a drop in U.S. Treasury yields. On Wednesday (11 October), the rand was trading at R19.04/$, R20.19/€, and R23.41/£. Brent crude is trading at $87.95 a barrel. [Reuters]