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Formal Eskom Negotiations Resume Friday

SOUTH AFRICA
  • Stage 4 loadshedding is currently underway across the country, after Eskom confirmed overnight that they had replenished their emergency reserves sufficiently to not require Stage 6 Loadshedding during the morning. However, Stage 6 Loadshedding will be implemented from 16:00-22:00 local time today so as not to deplete these reserves any further. Stage 4 is being implemented until 16:00 local.
  • Eskom CEO today holds an open media conference to provide further information on the “current system challenges” at 11am local time (1000BST/0500ET).
  • Today, negotiators are due to formally present the supposed 7% pay increase offer to unions, after progress in talks was made earlier in the week. A report yesterday suggested that both the NUM and Numsa had outright rejected the offer – however media this morning is refuting that original report, stating that the rejection claims are false.
  • Fin24 reported late yesterday that Gordhan and the President were exploring emergency measures for the utility, after the extended stage 6 loadshedding.
  • Lastly, Moneyweb writes that one of South Africa’s essential trade and manufacturing regions, the Eastern Cape, is set to receive an R9.1bln infrastructure development investment by Transnet National Ports Authority. The export boost investment plans to assist the province’s automotive, agricultural, rail and port infrastructure.
  • Absa Manufacturing PMI data takes focus going forward, with May’s figure showing a decent growth clip at 54.8.

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