Rand stabilises after sell-off on power woes

The rand stabilised early on Tuesday after a sell-off the previous session as investor concerns heightened over a power crisis.

President Cyril Ramaphosa cancelled his attendance at the World Economic Forum in Davos over the crippling power cuts, which have lasted at least six hours a day for most households and often more during the past week.

The electricity outages are a major source of public frustration for voters ahead of 2024 elections that could see the governing African National Congress lose its majority in parliament for the first time.

Eskom trimmed the level of power cuts from Tuesday, but the long-term power outlook remains bleak.

At 08:36, the rand traded at R17.06 against the dollar.

At 0930 GMT, Statistics South Africa will publish November mining output figures. Economists polled by Reuters have predicted a year-on-year contraction of about 6.8%, smaller than October’s 10.4% fall.

Domestic November retail sales and December consumer inflation numbers are due on Wednesday.