Mercedes-Benz factory shutdown in South Africa, and price pain hits households from today

Investors are also waiting for job data from the US economy. The rand was trading at 17.79 against the dollar, showing little change from Friday’s close. 

The dollar was flat against a basket of currencies as investors awaited the U.S. ADP employment report scheduled for Wednesday and the non-farm payrolls report on Thursday.

Both of which could provide insights into the Federal Reserve’s potential future interest rate cuts. 

Data from the South African Reserve Bank earlier indicated that the country’s money supply growth for last month was 6.86%, an increase from 6.12% in April.

Credit growth for May was reported at 4.98%, rising from 4.60% the previous month. Economists at Nedbank had predicted declines for both indicators year-on-year.

On Tuesday, 1 July, the rand was trading at R17.70 to the dollar, R24.32 to the pound and R20.86 to the euro. Oil was trading slightly lower at $66.47 a barrel.

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

Mercedes-Benz factory shutdown: Mercedes-Benz South Africa (MBSA) has temporarily shutdown vehicle production at its East London plant until the end of July. The company said that the shutdown is a standard procedure and is typical for production facilities to pause operations based on adjustments in their production schedules. [Moneyweb]

Price pain hits from today: Tuesday, July 1, marks the start of the municipal financial year in South Africa, leading to increased rates and taxes. Households in major metros will see higher monthly charges for electricity, water, sanitation, refuse removal, and property rates. [BusinessTech]

8-year driving licence: The South African government is conducting a cost analysis on the appeal to extend the validity period of driving licences to eight years in this country before October. OUTA CEO Wayne Duvenhage argues that no further analysis is necessary, calling it a common-sense plan that would be beneficial. [News24]

Good news for business: The government has proposed cutting costs and reducing red tape for business licences to encourage small businesses through the country’s first national policy-level guidance on general business licencing in South Africa. [Business Day]

The SOE in big trouble: The South African Post Office (SAPO) is struggling for survival amid severe financial difficulties, plummeting revenue, and significant losses, ultimately becoming technically insolvent. [Daily Investor]

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/5-things/830009/mercedes-benz-factory-shutdown-in-south-africa-and-price-pain-hits-households-from-today/