Makro in hot water, and R21 billion goes missing in South Africa
The rand climbed back above R16 last week as higher US interest rates and a hawkish stance from the Federal Reserve have provided support for the dollar.
Earlier this month, the Federal Reserve raised rates by 25 basis points to a range of 3.75% to 4.00%. Signals from Fed officials have kept expectations alive for another rate increase later in 2026.
The South African Reserve Bank (SARB) also raised its key interest rate by 25 basis points to 7.25%. This decision was influenced by the inflationary effects of the Iran conflict and rising energy prices.
Governor Lesetja Kganyago highlighted the importance of bringing inflation back to the central bank’s target of 3% as fuel-price pressures start to ease.
The rate hike initially pushed the rand toward R16.48, but the pair later retreated, putting broader technical trends under pressure.
The failure to break above R17 represents a significant setback for dollar bulls. The movement toward R16 indicates that sellers have regained control following a previous recovery attempt.
A sustained break below key support levels could accelerate the decline and strengthen the case for a broader recovery of the rand.
However, the overall outlook remains fragile. A hotter US Consumer Price Index (CPI) reading, renewed geopolitical tensions, or a more dovish stance from SARB could quickly undermine the rand’s position.
For now, a combination of dollar weakness, stronger gold prices, and softer US labour data is providing the rand with some much-needed relief.
On Monday, 28 September 2026, the rand was trading at R16.36 to the dollar, R21.67 to the pound, and R18.63 to the euro. Gold is trading at $4,196.91, while oil prices were at $107.10 a barrel.
5 important things happening in South Africa today
Makro in hot water: Makro’s online marketplace has come under fire after a buyer discovered that a heavily discounted SanDisk SSD purchased on the platform was a fake containing only a 32GB microSD card and a metal weight. In response to the investigation, parent company Massmart stated that it is reviewing third-party listings and removing non-compliant sellers to preserve marketplace integrity. [MyBroadband]
R21 billion meant for free electricity goes missing: National Treasury allocates an R21 billion equitable share grant to municipalities to provide Free Basic Electricity to poor households, but local governments frequently divert these funds toward salaries and service providers instead. To address this, Electricity Minister Kgosientsho Ramokgopa plans to bypass municipalities entirely and deliver funds directly to indigent consumers via Eskom’s smart meters and government databases. [Daily Investor]
Warning for South Africans with car trackers: A Cartrack client has escalated a dispute to the National Consumer Commission after the company denied his R150,000 warranty claim for a stolen car, citing his failure to perform mandatory quarterly unit tests. This case serves as a warning that tracking companies can enforce strict contractual conditions to void warranty payouts. [TimesLive]
France to sit down with South Africa over investment roadblocks: A France-South Africa business forum this week will address investment challenges in South Africa, including complex visa processes and municipal infrastructure issues. [Business Day]
Luxury petrol station brand to open 30 new stores: The Pantry luxury petrol station brand plans to open 30 more premium convenience stores across South Africa. [TopAuto]
Loading ...