The South African rand dropped sharply after bad news about mining output numbers. The currency was already struggling earlier in the day because of growing trade problems between the US and China. This made investors nervous and less willing to take risks in the market.
The South African rand dropped to 17.41 against the dollar today. This was a small decline of 0.6% from yesterday. The dollar stayed steady when compared to other major currencies. The US and China started charging new fees to shipping companies at their ports on Tuesday. This move shows how the trade fight between these two big economies has now spread to ocean transport routes.
The South African rand moves up and down based on what happens around the world. It often changes when the US makes new decisions or releases economic reports. Back home in South Africa things aren’t great. The latest numbers show mining production dropped by 0.2% in August compared to last year. This was different from July when mining grew by 5.1%.
The latest economic survey showed mixed results. Experts thought production would go up by 1% but some banks expected less growth at 0.7%. They based this on higher prices for precious metals. Business confidence went up last month because tourism did well and exports increased. Metal prices also helped boost the outlook. The main stock market index in South Africa dropped a bit by 0.4%. The rand’s exchange rate on October 15 was 17.33 to the dollar 23.14 to the pound and 20.14 to the euro. Oil prices went down slightly to 62.18 dollars per barrel.
President Ramaphosa made it clear that he will fire any minister who faces real criminal charges. He spoke to members of the NCOP who said he wasn’t being fair when dealing with corrupt ministers. The president wants to show he takes corruption seriously & will act the same way with all Cabinet members. His statement came after some people questioned how he handles cases of wrongdoing in his government. He stressed that he needs solid proof before taking action against any minister.
Smart prepaid electricity meters are being rolled out by Eskom and many South African cities to stop people from stealing power. But there’s a problem. After switching from regular billing to prepaid meters some customers have stopped buying electricity completely. City Power found issues with customer accounts after the switch. They will look at prepaid pricing again because until July 2024 these meters didn’t include basic service fees and network costs. The news comes from MyBroadband.
Local Government Changes Ahead Minister Hlabisa says the current system for running towns and cities isn’t working well. He plans to make big changes to fix these problems. His main ideas include finding new ways to fund local governments and shutting down some municipalities that aren’t needed. The minister wants to create a better system that works for everyone. These updates will change how local governments operate across the country. The reforms aim to make services more efficient for residents.
South Africa is growing slower than its neighbors. Moody’s thinks the country’s economy will only grow by 1.6% in 2024. This is the highest prediction among big financial agencies but it’s still not enough. The country needs faster growth to handle its debt problems. Meanwhile other African countries south of the Sahara are doing much better. They are expected to grow by almost 5% next year. This shows how South Africa is falling behind in the region’s economic race.
The ANC is having serious money problems after their bank accounts were frozen by a court. The party cannot do basic tasks or pay for anything right now. Their money manager Gwen Ramokgopa says the situation has stopped all work at the party. They want to fight this decision quickly in court to get access to their money again. The news was first reported by Daily Maverick.
