Banks head to court over rand manipulation, and South Africa offers US new deal
The rand strengthened on Tuesday as analysts observed that the recently imposed 30% tariffs by the U.S. on South African exports are likely to have a limited impact on the country’s assets.
JPMorgan stated that the markets have “largely priced in the reality of higher tariff headwinds already.” Last week, South African exports to the US faced a 30% tariff, the highest rate in sub-Saharan Africa.
In response, the country announced it would submit a revised trade offer to Washington in hopes of obtaining a lower rate.
The rand was trading at 17.57 against the dollar, over 1% stronger than Monday’s closing value, supported by a weaker dollar.
Analysts suggested that reducing the tariff to between 15 and 20% range, similar to that of regional peers, could alleviate economic pressure and bolster domestic equities, the rand, and bonds.
On Wednesday, 13 August, the rand was trading at R17.57 to the dollar, R23.74 to the pound and R20.54 to the euro. Oil was trading slightly lower at $66.20 a barrel.
Here are five other important things happening in and affecting South Africa today:
Rand manipulation: South African banks accused of rand manipulation are criticising the Competition Commission for being on the list of implicated institutions. Next week, they will present their case to the Constitutional Court, highlighting the financial and reputational damage caused by the Commission’s allegations of being part of a “banking cartel”. [Primedia Plus]
New trade deal: South Africa submitted a revised proposal for a trade deal to Washington on Tuesday. This move aims to lower the 30% tariff rate that US President Donald Trump imposed on exports to the United States last week. “The new offer substantively responds to the issues the U.S. has raised in the 2025 National Trade Estimates Report,” the trade minister said. [CNBC Africa]
ANC doubles down on BEE: The ANC has urged beneficiaries of Black Economic Empowerment to oppose the growing criticism of the policy. In response to the Democratic Alliance’s call to abolish what they termed “destructive” ANC policies like BEE and land expropriation, the ANC defended the policy, noting that it addresses historical inequalities and builds a society founded on democratic principles, social justice, and human rights. [BusinessTech]
Unemployment rate rises: Stats SA revealed on Tuesday that South Africa’s unemployment rate rose to 33.2% in the second quarter of 2025 from 32.9% in the previous quarter. [Mail & Guardian]
Mayor gets R4.2 million to sit at home: The Nelson Mandela Bay (NMB) Metropolitan Municipality has allegedly been paying suspended municipal manager Noxolo Nqwazi a salary of R200,000 per month throughout her 21-month suspension. [Newsday]
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