South Africa’s budget at risk and the economy faced pressure on Friday, 7 March, as the rand weakened against the U.S. dollar following President Donald Trump’s announcement to cut federal funding to the country.
Despite this, the dollar declined after U.S. job growth came in lower than expected. The rand traded at 18.21 against the dollar, slipping 0.3%, after initially dropping 1% earlier in the day. However, the currency had strengthened nearly 3% over the past week as investors adjusted to Trump’s tariff measures.
By Monday, 10 March, the rand stood at R18.33 to the dollar, R23.67 to the pound, and R19.86 to the euro. Meanwhile, global oil prices declined, with Brent crude trading at $70.03 per barrel.
Key News in South Africa
South Africa’s budget Crisis Looms
With only 48 hours left before the Budget is presented in Parliament, tensions rise as the ANC and DA remain at odds over the fiscal framework. If the DA refuses support, the Budget may be postponed again unless the ANC secures votes from other parties like the EFF. [News24]
Eskom Leadership Under Pressure
Amid Stage 3 load shedding, Electricity and Energy Minister Kgosientsho Ramokgopa voiced frustration with Eskom’s failures. He vowed to resume power station visits and suggested leadership changes may be imminent. “Where there has to be casualties, there will be casualties,” Ramokgopa warned. [Engineering News]
National Health Insurance Debate
Health Minister Aaron Motsoaledi released draft regulations for the National Health Insurance (NHI) Act, but stakeholders are unhappy, arguing their concerns were ignored. [Business Day]
Higher Taxes for Business and the Wealthy?
The Institute for Economic Justice (IEJ) is urging the ANC to increase corporate tax to 28%, introduce a wealth tax, and remove medical and pension tax benefits to address economic inequality. [Times Live]
Load Shedding Suspended
In a positive turn, Eskom ended load shedding one day early on Sunday after stabilizing power generation and replenishing emergency reserves. [BusinessTech]
