For Creamer Media in Johannesburg, I’m Thabi Shomolekae.    

Making headlines: South Africa consumer inflation at 3.2% y/y in February; Cogta committee calls for sustainable solutions for municipalities’ water challenges; And, AMSA, govt near funding deal for stricken mills

South Africa consumer inflation at 3.2% y/y in February

South Africa's headline consumer inflation remained at 3.2% year on year in February, unchanged from the month before, data from the statistics agency showed today.

In month-on-month terms inflation was at 0.9% in February, versus 0.3% in January.

Economists had forecast annual inflation would pick up slightly to 3.3%, still well below 4.5% - the level the South African Reserve Bank aims for.

The central bank is set to announce its next monetary policy decision tomorrow, after cutting rates at its last three meetings.

Economists polled by Reuters think the bank could pause its rate-cutting cycle given risks emanating from US President Donald Trump's tariff war and a deadlock in the ruling coalition over the country's national budget.

Cogta committee calls for sustainable solutions for municipalities’ water challenges

As water utility Rand Water outlined the challenges it faces, including the debt owed to it, the Portfolio Committee on Cooperative Governance and Traditional Affairs has called for sound intergovernmental relations to ensure that municipalities honour their agreements with Rand Water and other utilities.

During a presentation to the committee, Rand Water highlighted the increasing municipal debt for water services, from R1.5-billion in the 2014/15 financial year to over R8-billion in the third quarter of 2024/25.

The entity warned that it was hamstrung by municipalities failing to honour their bulk water purchase and debt settlement agreements and that municipalities’ non-payment of debt was leading to the deterioration of the utility’s financial health.

According to a statement by the Portfolio Committee on Cogta, the entity also outlined various challenges, including illegal connections, electricity supply challenges, vandalism and encroachment on its infrastructure by informal settlements.

Illegal connections, vandalism, tampering with water valves and damage to other infrastructure needed to be seriously discouraged, the committee said.

And, AMSA, govt near funding deal for stricken mills

South Africa is nearing a deal to provide funding to ArcelorMittal South Africa and keep the steel mills open, which are crucial for the nation’s economy, people with knowledge of the matter said.

The government plans initial support of about R500-million specifically to pay steelworkers over a period of six to eight months, said the people, who asked not to be identified because the information is private. It is also discussing additional bridge financing through the state-owned Industrial Development Corporation, which will then raise its stake in the company from its current level of about 8%, the sources said

The government, working through the state’s trade department and the IDC, also wants AMSA to consider offers for the two mills it plans to close, situated in the towns of Vereeniging and Newcastle, according to the sources.

Securing a deal to keep the mills open, which provide so-called long products including steel grades that can’t currently be made by local rivals, is crucial to the government’s plans to revive the economy through a massive infrastructure push. The car-making and mining industries are also the nation’s biggest foreign-exchange earners.

That’s a roundup of news making headlines today

Don’t forget to follow us on the X platform, at the handle @PolityZA