Ster-Kinekor closing cinemas in South Africa, and warning over US and Europe flight ban

The South African rand weakened against a stronger dollar on Tuesday, affected by lower gold prices. 

The price of gold fell as risk sentiment improved following US President Donald Trump’s decision to postpone tariffs on the European Union. 

The commodity-backed currency was trading at R17.89 against the dollar, approximately 0.2% lower than its previous close. 

Meanwhile, on the stock market, the Top 40 index remained flat, with mining companies facing pressure as the price of gold fell by more than 1%. 

Domestic investors are closely watching the central bank’s interest rate decision, which is set to be announced later this week. 

Economists surveyed by Reuters expect the South African Reserve Bank (SARB) to lower its main interest rate by 25 basis points to 7.25% on Thursday.

On Wednesday, 28 May, the rand was trading at R17.97 to the dollar, R24.22 to the pound and R20.32 to the euro. Oil was trading slightly lower at $64.60 a barrel.

Here are five other important things happening in and affecting South Africa today:

Access to US and EU at risk: The Department of Transport warned that South Africa risks losing access to US and EU airspace if it violates civil aviation accident investigation laws. This could also prevent EU and US airlines from entering South Africa’s airspace, which could be devastating to tourism with key trading partners. [Business Day]

Ster-Kinekor closing cinemas: Ster-Kinekor, South Africa’s largest cinema chain, will close its Claremont cinema in Cavendish Square next month. This follows the silent closure of two other cinemas in 2025, including a major one in Gateway, Umhlanga. [MyBroadband]

South Africa heading for food supply disaster: Major meat producer Eskort said South Africa risks a mid-winter food security crisis after banning chicken imports from Brazil amid an avian flu outbreak. [BusinessTech]

Problems with new mining bill: The recently published Mineral Resources Development Bill has created significant uncertainty among mining stakeholders. Issues include empowerment quotas, the need for ministerial consent for ownership changes, and the potential expropriation of mine dumps. [News24]

US relationship reset: President Cyril Ramaphosa announced that South Africa’s relationship with the United States had been “reset” after recent meetings with President Donald Trump. He emphasised that, contrary to media portrayals, their discussions were productive during a private lunch. [Engineering News]