Major blow to banks and retailers in South Africa, and Cape Town homeowners in trouble

South Africa’s rand strengthened by the week’s close on Friday, 25 April, as investors sought clarity amid a dispute over the national budget that had shaken domestic markets. 

The local currency was trading at R18.75 to the dollar, approximately 0.3% stronger than its previous close. 

The proposed VAT increase was withdrawn on Thursday, and investors who focused on domestic matters are eagerly awaiting details about the next steps in the budget process. 

In the stock market, both the JSE Top 40 and the broader all-share index closed around 0.2% higher.

On Tuesday, 29 April, the rand was trading at R18.55 to the dollar, R24.88 to the pound and R21.13 to the euro. Oil was trading slightly lower at $65.36 a barrel.

Here are five other important things happening in and affecting South Africa today:

VAT hit for banks and retailers: Last week, Finance Minister Enoch Godongwana announced that the VAT would stay at 15%. However, the Consumer Goods Council of SA (CGCSA) noted that retailers have suffered significant costs in preparing for the VAT increase and will incur more to revert their systems. Major banks have also raised similar concerns. “We’re yet to quantify the costs, but we’ve been told that it has been a significant expense in terms of financial cost and hours spent to ensure they were compliant,” said CGCSA CEO Zinhle Tyikwe. [Business Day]

Cape Town homeowners in trouble: Cape Town homeowners fear rising house prices and property taxes will force them to sell. Proposed tariff reforms could raise bills by over 20% for properties valued above R2 million, impacting many retired residents who say they cannot afford the aggressive tariff hikes. [Moneyweb]

Thousands of jobs on borrowed time: A R1.6 billion lifeline from the Industrial Development Corporation has saved around 3,600 jobs at ArcelorMittal’s long steel factories until the end of August. However, the company has no plans to extend job security beyond that date, and the closure of its long steel business remains confirmed. [eNCA]

Threat to businesses in South Africa: Cybercriminal activity targeting South African businesses is expected to intensify in 2025, in line with global patterns. However, head of security research at Orange Cyberdefense, Charl van der Walt, believes incidents could worsen more quickly in South Africa. [MyBroadband]

Nedbank board member dies: The board of directors of Nedbank and Nedbank Group announced the sudden passing of Errol Kruger, who died on 26 April 2025. Daniel Mminele, Chairman of the Board, said he was greatly saddened at the untimely passing of Errol and, on behalf of the board, extended his condolences to Errol’s family. He noted that Errol played an invaluable role in the governance of the Group, particularly as chair of the Group Risk and Capital Management Committee and Group Credit Committee, and his colleagues would fondly remember him on the boards for his humility and kindness. [Nedbank]