Coup risk flagged in South Africa, and the growing threat to Eskom’s grid

The rand strengthened on Tuesday following the release of better-than-expected local mining production figures and rising inflation data from the US for June, the world’s largest economy. 

The rand was trading at 17.7775 against the dollar, marking a 0.7% increase from Monday’s close. 

According to Statistics South Africa, the country’s mining output rose by 0.2% year-on-year in May, compared to a decline of 7.7% in April. 

However, analysts noted that despite these minor improvements, logistics continues to pose a significant challenge to production, especially in the current environment of subdued commodity prices and weak demand.

On Wednesday, 16 July, the rand was trading at R17.88 to the dollar, R23.95 to the pound and R20.78 to the euro. Oil was trading slightly lower at $768.98 a barrel.

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

Risk of a coup d’état: Minister in the presidency, Khumbudzo Ntshavheni, highlighted the potential risk of a coup in South Africa. However, she assured that no recent attempts had occurred, that intelligence agencies were monitoring suspected networks, and that measures had been put in place to mitigate this risk. [Business Day]

Growing threat to Eskom’s grid: Municipal debt owed to Eskom has grown at around R3 billion per quarter over the past year, with cumulative debt at just under R100 billion. Electricity and Energy Minister Kgosientsho Ramokgopa warned that if left unaddressed, the ongoing issues will result in the total collapse of the South African electricity complex. [MyBroadband]

RAF board dissolved: The Minister of Transport, Barbara Creecy, has dissolved the board of the Road Accident Fund (RAF). On Tuesday, the Department of Transport (DoT) announced that this decision comes in response to ongoing governance and operational issues that have severely hindered the RAF’s ability to fulfil its statutory responsibilities. [Moneyweb]

Bad news for Interest rates: South African central bank chief Lesetja Kganyago flagged that dollar depreciation because of US tariffs and deflation in China are clouding the outlook for inflation locally ahead of a rate-setting meeting at the end of the month. [BusinessTech]

Trouble for Uber: E-hailing drivers have raised concerns about unfair work practices and call for more regulation in the industry. They argue that they bear all costs, including vehicle ownership, insurance, fuel, and risks, without benefiting from their association with Uber. Although Uber has stated its commitment to service continuity, drivers have vowed to strike until they can renegotiate their working terms. [EWN]