For Creamer Media in Johannesburg, I’m Sabrina Jardim.

Making headlines: Parties say State of Disaster declaration possibly a disaster within itself, industry reacts to the good and the bad of SoNA, and, Rand pays price for nation’s energy crisis

Parties say State of Disaster declaration possibly a disaster within itself

President Cyril Ramaphosa’s State of the Nation Address has evoked mixed responses from trade unions, industry associations, academia and businesses, with some taking to the courts against the State of Disaster declaration in respect of the country’s electricity crisis.

The Democratic Alliance and trade union Solidarity have announced that they will challenge the declaration in court, describing the declaration as irrational, unnecessary and possibly unconstitutional.

The DA and Solidarity fear a repeat of government’s abuse of power that occurred during the Covid-19 State of Disaster.

Solidarity CEO Dr Dirk Hermann said a State of Disaster will not end the energy crisis any faster, but that it opens the door to major abuse once again.

 

Industry reacts to the good and the bad of SoNA

While SoNA was delivered amid a severe crises across critical economic and social spheres in South Africa, industry respondents recognised both the good and the bad ideas contained in government’s plans.

Business Unity South Africa expressed concern about the President likening the Covid-19 crisis to that of the energy crisis, when in fact the energy crisis is not a result of natural disaster, but rather of poor governance and a lack of decisive leadership.

Busa said the energy crisis has been exacerbated by a weak State that is hesitant to work in real partnership with business, despite several offers by business to support and work with government.

Rand pays price for nation’s energy crisis

The Eskom risk premium is in full force for South Africa’s rand.

The currency of Africa’s most industrialised economy is headed for a fourth weekly loss versus the dollar, the longest streak since an emerging-market-wide selloff in October.

This time, the under-performance is specific to South Africa with the rand already down 4.1% this year, while most of its peers are firmer, with Chile’s peso racking gains of over 6%.

An FX strategist at RBC Capital Markets said market confidence was low as Ramaphosa’s response to the ongoing crisis has been slow, while some pledges to address the situation have not been met sufficiently.

 

That’s a roundup of news making headlines today

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