by Here’s what is happening in and affecting South Africa today:
Coronavirus: In South Africa, there have been 12,513 new cases of Covid-19, taking the total reported to [2,075,409. Deaths have reached 62,171 (+331), while recoveries have climbed to 1,827,821, leaving the country with a balance of 185,417 active cases. The total number of vaccines administered is 3,459,660 (+145,382).
- Dire: The situation is getting dire for the hospitality industry, with representatives saying that hotels, restaurants and other players in the sector will not be able to take the blow from level 4 lockdown restrictions being extended. Unfortunately, economists and analysts say that it is very likely that the lockdown will be extended, probably for another two weeks. Groups are putting pressure on the government to re-introduce some form of financial support for the sectors hit by the lockdown – with pleas for the TERS or Solidarity Fund to step in. The only thing government says it is looking at is the TERS. [702 1,2]
- Infections: The rolling seven-day average of daily infections in Gauteng has shown a downward turn – though scientists say it is too early to celebrate, and the decline would have to continue for several days before it can be considered a trend. A peak would indicate that infections are slowing but is only the halfway point of a wave, and vigilance and protective measures would have to continue – otherwise, the numbers risk turning again and moving upwards. Gauteng’s neighbouring provinces, meanwhile, are still seeing numbers rise, with the high infection rate spilling over from the third wave epicentre. [EWN]
- Negotiations: Unions are considering the latest wage offer from the government, of a 1.5% increase and a bonus of up to R1,695. An expert on these kinds of negotiations believes that workers will be tempted to take the offer, even though it is not close to their demands – largely because they know that there is very little room for the government to make concessions. While unions have threatened ‘the mother of all strikes’, there is also a prevailing understanding that the country as a whole and the economy in particular cannot withstand that, and will lead to an even weaker position for jobs and wages. [Moneyweb]
- Zuma: Jacob Zuma’s supporters within the ANC NEC suggested establishing a special panel to find a ‘political solution’ to his arrest – a proposal that was roundly rejected by the party. The ANC wants the matter to be dealt with by the courts and said Zuma must comply with the law. The police, meanwhile, have put plans to arrest the former president on hold, due to pending litigation and court action. This will be as long as there isn’t a direct order from deputy chief justice Raymond Zondo to do so. The police said they did not come down on the Nkandla gatherings this week to avoid bloodshed. Zuma’s supporters have vowed to engage police, and have been firing live rounds. [TimesLive, BusinessLive]
- Markets: South Africas rand eased 0.1% after data showed South African private sector activity expanded at a slower rate in June, due to disruptions caused by new Covid-19 measures. The currency is coming under pressure as its vaccination programme lags peers and other nations, with the currency joining the Russian ruble in leading emerging market indices lower. The rand is feeling the pain from a spike in Covid-19 cases, which is keeping expectations for tighter monetary policy at bay. On Tuesday the rand is trading at R14.21/$, R16.89/ and R19.74/£.
