Government wants to roll out petrol stations in South Africa, and new taxes incoming

The South African rand strengthened on Thursday after Deputy Finance Minister David Masondo indicated that a lower inflation target could soon be introduced. 

The rand traded at 18.08 against the dollar, approximately 1.1% stronger than Wednesday’s closing level. 

Masondo mentioned that more details might be revealed by the central bank on May 29, when it is expected to announce its latest interest rate decision. 

According to analysts, the rand is responding positively to news that the Treasury supports the central bank’s long-standing proposal to change and lower the inflation target framework. 

Market attention will also be on Finance Minister Enoch Godongwana’s revised budget speech next week.

This will coincide with a meeting between South African President Cyril Ramaphosa and US President Donald Trump.

On Friday, 16 May, the rand was trading at R18.01 to the dollar, R23.99 to the pound and R20.17 to the euro. Oil was trading slightly lower at $64.70 a barrel.

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

Government’s petrol station plan: The South African National Petroleum Company (SANPC) plans to leverage its position to explore opportunities in downstream operations, including petrol stations. This move comes as international petroleum giants are vying to acquire Shell’s downstream assets in South Africa. According to Bloomberg, Abu Dhabi National Oil Company (Adnoc) and Swiss trading firm Gunvor are among the shortlisted bidders for Shell’s assets. [Daily Investor]

New taxes incoming: With the tabling of a new budget on 21 May 2025, South Africans should be on the look out for new taxes that were lower or cut in the previous two attempts. This includes potentially higher taxes on tobacco and alcohol, as well as higher fuel taxes for the first time since April 2022. With no VAT hike for easy revenue Treasury will be on the hunt for all it can find. [BusinessTech]

Netflix price hikes: Netflix has raised prices for its Mobile, Standard, and Premium plans in South Africa. New subscribers will pay 13% to 20% more than at the end of April 2025, with increases for existing users starting in June 2025. [MyBroadband]

AGOA is dead: JP Landman, an independent political and economic analyst, states that South African producers must realise the Trump administration’s tariffs have essentially made the African Growth and Opportunity Act (AGOA) “dead.” He suggests seizing this moment to explore new markets, particularly in the Middle East and the Association of Southeast Asian Nations (ASEAN). [News24]

Tshwane denies targeting Kleinfontein: The City of Tshwane Municipality has increased Kleinfontein’s rates from R50,000 to R2 million per month, posing a survival threat to the illegal white Afrikaner settlement. The North Gauteng High Court had previously declared Kleinfontein illegal and ordered the municipality to enforce its by-laws. Deputy Mayor Eugene Modise said they are simply following the court’s directive, and denied that the city is unfairly targeting the settlement. [EWN]