5 important things happening in South Africa today

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

• Money talks for struggling SOEs: South Africa has begun discussions with the World Bank to extend a $1 billion loan to support Eskom’s transmission company and to upgrade Transnet’s railway infrastructure, deputy finance minister David Masondo said. The two entities have received multiple bailouts from the government in recent years but continue to be hobbled by worsening operational and financial problems. [Business Day]

• Sanral chair’s criticised million: Sanral board chair Themba Mhambi took home R3 million in board fees while 50% of its road targets were missed. Over 2022/23, Sanral held 24 board meetings, 19 of which were “special board meetings”. Mhambi’s fees more than doubled that of former Transnet chair Popo Molefe or Eskom chair Malegapuru Makgoba in 2022. [News24]

• South Africa’s losing investors: The foreign flows out of the MSCI South Africa Index fund show that investors have lost trust in the country as a good investment destination. The JSE’s latest data also showed a R103 billion net sale of shares from foreign traders in 2023. This was significantly higher than the R74 billion the year before. Karin Richards, an investor and technical share trader, said it reflects the relentless erosion of confidence in South Africa. “After a brief Ramaphoria blip in 2018, it’s been downhill all the way,” she said. [Daily Investor]

• Discovery Health CEO resigns: Discovery Health CEO Dr Ryan Noach has resigned after more than 15 years to pursue an entrepreneurial opportunity in South Africa that falls outside of the healthcare and financial services sectors. “Ryan has played a pivotal role in the group and we’re deeply thankful for the profound impact he has had,” Discovery Group CEO Adrian Gore said in a statement announcing Noach’s departure. [News24]

• Markets: The rand dropped on Thursday against a stronger dollar after U.S. inflation climbed higher than expected, adding to concerns that the US FED could keep interest rates higher for longer. On Friday (13 October), the rand was trading at R18.99/$, R20.03/€, and R23.17/£. Brent crude is trading at $86.66 a barrel. [Reuters]