New property rules for Cape Town, and South Africa’s shocking corruption stats
The South African rand remained stable on Tuesday, as domestic investors awaited the release of inflation data and an interest rate decision later this week.
The rand traded at 17.37 against the dollar, marking a 0.2% decline from Monday’s close.
South Africa’s benchmark 2035 government bond also weakened, with yields rising by 3.5 basis points to 9.25%, following a 12 basis point drop on Monday.
This yield is around its highest level since 2018. The rand is expected to receive further guidance from the decisions made by the Federal Reserve and the South African Reserve Bank (SARB) this week, as well as from the potential implications for carry trades.
The SARB will announce its interest rate decision on Thursday, following the release of the Consumer Price Index on Wednesday.
Meanwhile, the dollar last traded 0.4% lower against a basket of currencies, in anticipation of the Federal Reserve’s policy meeting on Wednesday, where a cut in interest rates is widely expected.
On Wednesday, 17 September, the rand was trading at R17.35 to the dollar, R23.61 to the pound and R20.43 to the euro. Oil was trading slightly lower at $67.59 a barrel.
Here are five other important things happening in and affecting South Africa today:
New property rules for Cape Town: Cape Town is introducing new property planning rules next month to expedite approvals, with Mayor Geordin Hill-Lewis highlighting the possibility of using AI for automatic approvals. One of the key changes will allow small-scale developers to build up to 12 affordable rental units without rezoning, aiming to address the housing crisis. [News24]
South Africa’s shocking corruption stats: Formal complaints have been filed with the Public Protector over what is called a “spectacular failure of consequence management” by the National Treasury. This is because only 0.2% of those flagged for corruption have been blacklisted. The Special Investigating Unit had recommended adding 467 individuals and companies to Treasury’s Restricted Suppliers Register, but only one has been blacklisted. [Newsday]
Plan to cut electricity prices: Electricity and Energy Minister Kgosientsho Ramokgopa is actively engaging stakeholders to review South Africa’s electricity pricing policy. The goal is to find a balance between affordability for households and industries and Eskom’s sustainability. Ramokgopa aims to complete this review by the end of June 2026. [MyBroadband]
Interest rate expectation: The monetary policy committee (MPC) of the Reserve Bank is widely expected to maintain current interest rates during its meeting on Thursday. This will be the first meeting since the implementation of US tariffs in August, a development anticipated to negatively impact local inflation and economic growth. [Business Day]
JSE hits new record: The JSE All Share Index (Alsi) touched a fresh record above 105 000 points on Tuesday, remaining at those levels for most of the day before closing at 104 885. [Moneyweb]
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