More signs of collapse in South Africa’s richest city, and new possession rules for cannabis
The rand strengthened on Wednesday following a purchasing managers’ survey that indicated improved business conditions.
It traded at 15.9425 against the dollar, approximately 0.3% stronger than Tuesday’s close.
The dollar remained stable against a basket of currencies, while gold rose further after experiencing its largest daily gain in 17 years during the previous session.
According to an S&P Global survey, South Africa’s private sector business conditions stabilised in January after a challenging end to 2025. This stabilisation came as demand steadied and price pressures eased.
The report highlighted prevailing optimism about the outlook, citing factors such as lower inflation, rising tourism, and improved energy supply as supportive of companies’ 2026 forecasts.
Like other risk-sensitive currencies, the rand is influenced by global drivers, including US policies, in addition to local factors.
On Tuesday, US President Donald Trump signed a law extending a preferential trade program for Africa until 31 December, effective retroactively from 30 September 2025.
However, uncertainty remains about whether South Africa will continue to benefit from this preferential access due to strained relations with Washington.
On the Johannesburg Stock Exchange, the Top-40 index saw an increase of 0.9%.
As of Thursday, 5 February, the rand is trading at R16.14 to the dollar, R21.99 to the pound, and R19.03 to the euro. Gold is currently valued at $4,887.19 per ounce, while oil prices have risen to $67.95 per barrel.
5 important things happening in South Africa today
More signs of collapse in South Africa: Persistent water outages are getting worse across Johannesburg, reflecting a fragile, poorly maintained system that is failing residents. Parts of the city have been without water for weeks, with residents turning to protest. [Mail & Guardian]
New possession rules: Adults wishing to use cannabis on private property will be limited to possession of 750 grams at any given time during a single day, as the state moves to put the guardrails in place to effect the Cannabis for Private Purposes Act. [Business Day]
Eskom’s U-turn on solar fines: Eskom has stated it will not fine individuals for not registering their solar systems, reversing its earlier stance. The Organisation Undoing Tax Abuse advised small-scale generation system owners to postpone registration for now. [News24]
Minimum wage jitters: The Department of Employment and Labour has increased the National Minimum Wage to R30.23 per hour, marking the first time it has hit the R30 mark. NEASA, however, argues that this increase is un beneficial, as it may lead employers to avoid hiring or operate unlawfully. [Newsday]
TFG challenging Takealot: TFG has published its third-quarter and nine-month fiscal year-to-date results, reporting that online sales in TFG Africa grew by 54.9% in Q3 and by 46.7% year to date. [MyBroadband]
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