Government scrambles to contain beef supply crisis, and South African universities are in trouble

The South African rand retained its early gains on Wednesday after a key parliamentary committee endorsed the long-delayed national budget, which had been tied up in political disputes for months.

The rand was trading at 17.79 against the dollar, approximately 0.4% stronger than Tuesday’s closing level.

A majority of members on the Standing Committee on Finance supported the budget’s fiscal framework and revenue proposals, paving the way for a vote in the lower house of parliament on 11 June.

Johann Els, chief economist at Old Mutual, expressed his expectation for further rand strength in the short term, citing the reduced uncertainty surrounding the budget.

On Thursday, 5 June, the rand was trading at R17.84 to the dollar, R24.17 to the pound and R20.36 to the euro. Oil was trading slightly lower at $64.68 a barrel.

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

Big pension changes proposed: The government will implement new national regulations on the movement of cloven-hoofed livestock due to foot-and-mouth disease outbreaks. South Africa’s largest beef producer has reported the disease at its main feedlot in Gauteng, resulting in significant cuts to output. [News24]

Universities in trouble: A senior research associate at the University of Cape Town (UCT) says South African universities are in trouble and struggling to make ends meet. The collapse of NSFAS, caps on enrolments and residence fees, and proposed limitations on tuition fees are exacerbating the situation. [Business Day]

What South Africa needs for a ratings upgrade: a senior S&P Global Ratings official said South Africa needs faster economic growth and credible fiscal consolidation to secure its first credit rating upgrade in two decades. [CNBC Africa]

South Africa finally has a budget: After multiple false starts, the ANC and DA supported the parliamentary adoption of a key aspect of the 2025 Budget on Wednesday, 4 June. [Daily Maverick]

Warning over e-hailing: E-hailing drivers and riders in South Africa are advocating for stricter registration requirements on ride-hailing apps due to widespread criminal activity in the industry, targeting both drivers and passengers. [MyBroadband]