Bad news about driving licence fees, and China slowly taking over major industry in South Africa
The rand remained stable in early trading on Friday as traders anticipated US labour market data later in the day for insights into the Federal Reserve’s policy direction.
The rand was trading at 16.54 against the dollar, showing little change from its previous close of 16.52.
Last week, the rand experienced a rally to nearly a three-year high, driven by positive sentiment towards South Africa, as the JSE stock index reached record levels and bond yields remained low.
Analysts observed that the rand is consolidating around the R16.50 level following a correction over the past two days from near its three-year highs.
There are indications that the Reserve Bank has absorbed some of the recent strong dollar inflows in an effort to bolster its foreign reserves.
On Thursday, the central bank released data indicating that South Africa’s net foreign reserves increased to $71.14 billion at the end of December, up from $70.02 billion in November.
On Monday, 12 January, the rand is trading at R16.47 to the dollar, R22.11 to the pound, and R19.20 to the euro. Gold is trading slightly lower at $4,567.67 per ounce, while oil is up to $63.42 a barrel.
5 important things happening in South Africa today
Bad news about driving licence fees: Transport Minister Barbara Creecy has said that renewing a driving licence card may become more expensive if its validity is extended from five to eight years. The department is cautious about the change to prevent “unintended consequences” and is currently studying its financial impacts. [MyBroadband]
China is slowly taking over major industry: Chinese car imports are creating South Africa’s largest bilateral trade deficit, with a R136.6 billion gap in the first nine months of last year. Nearly 375,000 vehicles entered the local market, giving Chinese brands nearly half of showroom sales and putting strain on an industry that supports 460,000 jobs. [Business Day]
Discovery to cover costs of medical aid claims mistake: Discovery Health will cover costs from a claims error in 2025 that led to overpayments for some Medical Aid members. Those on Executive, Comprehensive, and Priority Plans were notified in December 2025 about the need to repay the amounts incorrectly paid out. [Newsday]
IEB achieves an overall 98.3% pass rate: The Independent Examinations Board has announced an overall pass rate of 98.3%. 89.12% have achieved entry to study for a degree, reflecting a slight decrease from 2024. A total of 17,000 candidates wrote the IEB examinations, with Gauteng showing the highest number from 114 schools. [eNCA].
AGOA D-day coming for South Africa: The US House of Representatives is set to vote this week on a bill to extend a key preferential trade deal with Africa for three years. The bill passed a committee vote in December with strong bipartisan support. However, there are concerns about South Africa’s eligibility under AGOA due to strained relations with Washington. [News24]
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