For Creamer Media in Johannesburg, I’m Halima Frost.

Making headlines: South African inflation drops to lowest since June 2020; Govt warns public against interfering in spaza shop registrations; And, Treasury to suspend municipal funds over water debt

South African inflation drops to lowest since June 2020

South Africa's annual inflation rate slowed sharply to 2.8% in October, data showed today, setting the stage for another interest rate cut by the central bank this week.

Statistics South Africa said falling fuel prices were the primary driver of the slowdown in the headline rate from 3.8% in September.

October's reading is the lowest inflation has been since June 2020, during the peak of the Covid-19 pandemic.

Independent economist Elize Kruger said fuel and food price developments play a greater role in October, which is considered a low survey month.

South Africa's government-regulated petrol and diesel prices fell by more than one rand a litre in October.

Govt warns public against interfering in spaza shop registrations

Government has appealed to members of the public to not disturb the registration of spaza shops and other small and medium-sized business enterprises by blocking certain shop owners from participating in the process.

It said while the registration process of spaza shops had steadily commenced in various parts of the country, government was concerned about isolated incidents of disruptions, particularly in areas around Soweto, which have since been attended to by law enforcement agencies.

Government warned members of the public and any unauthorised bodies from conducting their own unlawful inspections.

Last week, President Cyril Ramaphosa announced the closure of spaza shops implicated in food-borne illnesses that had claimed the lives of 22 children in recent weeks, and called for all spaza shops and food handling facilities to be registered with municipalities within 21 days.

Meanwhile, The African National Congress refuted what it termed "misleading narratives", suggesting that the registration and regulation of all spaza shops favoured foreign nationals.

The ANC said the interventions were designed to address pressing socioeconomic challenges, protect public health, revitalise local economies, and aimed to ensure fairness, compliance and safety.

Soweto community members and Operation Dudula have led protests against the registration of businesses for foreign nationals

And, Treasury to suspend municipal funds over water debt

South Africa’s Treasury plans to withhold funds from five municipalities next month over their unpaid water bills, as part of an effort to compel local governments to pay for basic services.

Treasury will invoke a law allowing the authorities to block the payment of a so-called equitable share of money that’s allocated to municipalities to pay for services including water and electricity, according to a presentation by the department in parliament. The municipalities of Matjhabeng, Kopanong, Thabazimbi, Merafong City and Victor Khanye are affected by the decision.

Treasury explained that the purpose of interventions should be to restore financial stability, improve service delivery, and ensure good governance in distressed municipalities.

South Africa’s water boards are owed R23.4-billion, more than 70% of which is four months overdue. The debt hampers their ability to maintain and upgrade ageing infrastructure at a time when commercial hubs including Johannesburg are facing shortages.

That’s a roundup of news making headlines today

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