Cape Town — Consumers Facing Toughest Economic Times Since Covid-19 Lockdown

According to Chief Economist at Econometrix Azar Jammine, South African consumers are facing the toughest economic conditions since the advent of the Covid-19 lockdown restrictions, SABC News reports. An expected interest rate hike of between 25 and 50 basis points, combined with rolling power cuts, has led Jammine to suggest that downward economic pressure can be expected in the short term. Similarly, Chief Economist at Investec, Annabel Bishop, warned that continued inflation may lead to additional interest rate hikes.

Experts Warn That Failure to Implement Eskom Tariff Hike Would Be Disastrous

An electricity tariff hike of 18.65% granted by the National Energy Regulator of South Africa has caused outrage among consumers and even prompted President Cyril Ramaphosa to intervene ahead of its application on April 1, 2023. However, according to Wits University Economist, Kenneth Creamer, failure to implement the price increase would have dire consequences on both Eskom and the government in the long term, Eyewitness News reports. Creamer warned that any further economic weakening of the power utility will require bailouts and would lead to more load shedding.

Former Broadcasting Chief Loses Appeal, Ordered to Pay Back 'Success Fee' Millions

Hlaudi Motsoeneng, the former chief operating officer of the SABC, has lost an appeal bid to avoid paying a "success fee" of R11.5 million paid to him after securing deals with broadcasting company MultiChoice, Times Live reports. The Special Investigating Unit (SIU) confirmed that the Supreme Court of Appeal dismissed Motsoeneng's appeal with costs on January 19, 2023. In August 2016, the SABC board decided to award Motsoeneng the multi-million rand sum, however, in 2018, the SIU, along with the SABC, issued a summons against Motsoeneng in the high court to recover fee after it was declared unlawful.