Best news in 25 years on the cards for South Africa, and Ramaphosa appoints new minister
The rand appreciated on Wednesday following the finance minister’s announcement of a lower inflation target.
This change, anticipated by investors, has contributed to a rally in local assets this year. The rand was trading at 17.0650 against the dollar, reflecting a 0.5% increase from Tuesday’s closing level.
South Africa’s international bonds also showed slight gains as details from the finance minister’s mid-year budget review were released, with longer-dated bonds performing the best.
Finance Minister Godongwana stated that the inflation target will be adjusted to 3% with a tolerance band of 1 percentage point on either side, down from the previous range of 3% to 6%.
However, he noted that this new target will be implemented over two years, indicating that the central bank may have some flexibility in achieving it initially.
As of September, the most recent month for which data is available, annual inflation was recorded at 3.4%.
The National Treasury has revised its forecast for the consolidated budget deficit this fiscal year to 4.7% of gross domestic product, an improvement from May’s estimate of 4.8%.
Additionally, the Treasury’s economic growth projections for this year and the next have been adjusted downward to 1.2% and 1.5%, respectively, from previous estimates of 1.4% and 1.6%.
The Johannesburg Stock Exchange’s Top 40 index was last reported up 1%.
On Thursday, 13 November, the rand was trading at R17.07 to the dollar, R22.40 to the pound and 19.78 to the euro. Oil was trading slightly lower at $62.66 a barrel.
5 important things happening in South Africa today
Best news in 25 years on the cards: The Treasury is hopeful that credit rating agencies will acknowledge South Africa’s improving public finances after Wednesday’s Medium-Term Budget Policy Statement. A credit rating upgrade from S&P Global Ratings could be possible on Friday. South Africa has not received a credit ratings upgrade since 2000, 25 years ago. [Business Day]
Ramaphosa appoints new minister: Ramaphosa’s office said in a statement late on Wednesday that Willem Aucamp would be forestry, fisheries and environment minister, and Alexandra Abrahams one of two deputy trade, industry and competition ministers. [Reuters]
6,000 jobs on the chopping block: Over 6,000 unlawfully-appointed Gauteng crime prevention wardens, initiated by Premier Panyaza Lesufi, face unemployment as the responsible retraining entity is bankrupt and unable to handle the task. [News24]
Still no Starlink in South Africa: Vodacom recently signed an agreement with Starlink to deliver high-speed, low-latency broadband Internet to millions of businesses across Africa. However, Vodacom said it will not offer Starlink services in South Africa at this stage. [MyBroadband]
Major price hikes coming for key nature reserves: Visitors to North West’s nature reserves will face significant price increases starting 1 December 2025, with entrance fees for South African adults rising by up to 332%. At Madikwe Game Reserve, the fee will soar from R180 to R777, and most other reserves, including Pilanesberg, will see fees more than double. [Newsday]
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