Government going after pensions of foreigners in South Africa, and it gets worse for anyone who needs a new driving licence
The rand strengthened on Friday, supported by a weaker dollar and a rebound in gold prices.
This shift came after US Federal Reserve Chair Jerome Powell indicated a potential rate cut at the central bank’s September meeting.
Throughout much of the week, the rand remained range-bound, despite South Africa’s economy recording its highest consumer inflation in ten months on Wednesday.
Analysts noted that the Fed’s remarks during its Jackson Hole symposium would be the primary catalyst influencing the currency.
The rand was trading at 17.45 against the dollar, approximately 1.5% stronger than Thursday’s close and at its highest level since early November 2024.
The dollar was about 0.8% weaker against a basket of currencies, and the rebound in gold prices further enhanced the appeal of South Africa’s currency, given the country’s status as a major gold producer.
On Monday, 25 August, the rand was trading at R17.46 to the dollar, R23.59 to the pound and R20.43 to the euro. Oil was trading slightly lower at $67.79 a barrel.
Here are five other important things happening in and affecting South Africa today:
Government going after foreign pensions: Foreign pensions and social security payments are currently exempt from income tax, but South African authorities plan to change this, viewing it as a loophole. This proposal, first mentioned in the year’s budget, is part of broader tax regime enhancements. The 2025 Draft Taxation Laws Amendment Bill outlines plans to remove the exemption on foreign retirement benefits. [BusinessLive]
It gets worse for new driving licence: As of mid-August 2025, spokesperson for the Department of Transport, Collen Msibi, said that the turnaround time for a new driving licence card had increased to eight to nine weeks, up from four to six weeks in June. Normally, it takes two weeks for a card to be ready. The backlog is expected to extend into 2026, but the department aims to resolve it by December 2025. [MyBroadband]
Another billionaire backed as ANC president: Billionaire Patrice Motsepe is rumoured to be the top choice among some African National Congress (ANC) senior officials for the next party president come 2027. [Newsday]
Floodgates open for private sector: South Africa’s government announced it will allow private firms to operate on its freight rail network to improve efficiency, as state-owned Transnet faces demand challenges. Transport Minister Barbara Creecy stated that 11 of 25 applying companies met the requirements to proceed in negotiations, securing slots across 41 routes. [CNBC Africa]
Criminals targeting property sector: Criminals are increasingly using Artificial Intelligence (AI) to execute complex property scams aimed at buyers, sellers, and tenants, particularly in sectional title schemes. Pearl Scheltema, CEO of Fitzanne Estates, warned that these risks are escalating as scammers leverage technology for more convincing attacks. [BusinessTech]
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