While you were asleep: A new round of flooding causes havoc in KZN

We begin the new week with KwaZulu-Natal, just as the embattled province was finding its way after an onslaught of heavy rain and flooding hit the province last month killing over 400 and displacing thousands, KZN was hit with more extreme weather over the weekend.

The South African Weather Service (SAWS) issued an orange Level-6 warning for disruptive rain over the extreme northeastern parts of KZN on Monday with the rainfall potentially leading to flooding of roads, settlements and bridges and further mudslides.

On Saturday, the weather service said, “The cut-off low system is still causing widespread rainfall in the east this afternoon and evening especially along the KZN coast where the Impact Based Warning was increased to a Level 10. Another cold and showery day in the east on Sunday.”

The weather service expects widespread showers and thunderstorms while residents in low-lying areas and those living around rivers and streams need to be extremely cautious.

The SAWS warned there could be further damage to infrastructure and traffic disruptions.

EWN reports that a block of flats located in Umdloti was evacuated after it started to collapse while motorists said one of the main entrance roads to Umdloti was at risk of being washed away.

Last month’s flooding already severely impacted KZN’s economic prospects, which was already under immense strain following the 2021 July unrest and pandemic induced lockdowns. KZN is the second largest contributor to SA’s R6.7 trillion GDP.

eThekwini Mayor Mxolisi Kaunda said the municipality had not yet received a comprehensive report on the damage and impact of the latest round of flooding but said: “a worrying picture” is emerging.

The April flooding led to public infrastructure damage totalling an estimated R25 billion while over 27,000 households were affected, over 8,500 houses destroyed, and over 13,500 partially destroyed with thousands of people displaced.

In the currency markets, the rand is trading firmer this morning at R15.80/$ after ratings agency S&P Global upgraded South Africa’s outlook from ‘neutral’ to ‘positive’ while keeping local and foreign currency ratings unchanged.

“S&P cited South Africa’s positive terms of trade as well as fiscal discipline as reasons for the change in outlook. The rand is further being supported by a slightly softer dollar and firmer commodity prices this morning. A break below R15.75 is needed to open up further strength toward R15.50 in the short term,” comments TreasuryONE.

The local unit faces challenges ahead in the form of a precarious electricity supply, fresh flood damage in KZN, and fears of further lockdowns in Beijing due to rising coronavirus cases in China.

Precious metals closed marginally softer on Friday but have bounced nicely this morning on the back of the softer dollar, says TreasuryONE.

Gold is up 0.5% at $1,855, platinum up 0.6% at $960, and palladium up 1.7% at $2,005. Oil is trading higher as demand concerns from China underpin the price. Brent is currently quoted at $113.30 a barrel.