Good news for Eskom customers in South Africa, and Ramaphosa withholds interim Madlanga report from the public
The rand strengthened on Monday, buoyed by higher gold prices as local investors look towards the final economic data releases of the year for insights into the health of Africa’s most industrialised economy.
The rand traded at 16.78 against the dollar, approximately 0.6% stronger than its previous close.
Gold remained near a more than seven-week high on Monday, driven by a weaker dollar and lower US yields.
As a major producer of precious metals, South Africa often benefits from rising bullion prices.
“Over the past week, analysts noted that the rand was able to capitalise on weaker USD sentiment.
As the dollar remained in a downward trend, the rand sustained a break below 16.90/dollar, paving the way for further appreciation.
They added that the rand could now test levels in the 16.60s before the year’s end, which would significantly reinforce the positive cycle that has contributed to the rand’s impressive appreciation this year.
Domestically-focused traders analysed the South African Reserve Bank’s quarterly bulletin.
It showed that the country experienced foreign direct investment outflows of R21.0 billion ($1.25 billion) in the third quarter of 2025, a decrease from outflows of R73.5 billion in the second quarter.
On the Johannesburg Stock Exchange, the Top 40 index was last reported down 0.05%.
On Tuesday, 16 December, the rand was trading at R16.80 to the dollar, R22.46 to the pound and R19.75 to the euro. Oil was trading slightly lower at $60.26 a barrel.
5 important things happening in South Africa today
Good news for Eskom customers: Minister of Electricity and Energy Kgosientsho Ramokgopa indicated that further electricity price concessions for the smelting industry are likely by March next year. However, he emphasised the need for a solution that doesn’t overburden the government or consumers, stating, “There is no free lunch,” and warned of potential costs to the end consumer. Previously, special pricing agreements between Eskom and large users have remained confidential, leading to higher electricity prices for the public. [News24]
Ramaphosa withholds interim Madlanga report: President Cyril Ramaphosa will publicly release the final report of the Madlanga commission of inquiry into alleged links between law enforcement and criminal elements, according to his spokesperson, Vincent Magwenya. However, the interim report, set to be submitted later this week, will not be made public, leading to criticism over transparency. [Business Day]
South Africa’s drug problem: South Africa was identified as having the most pervasive synthetic drug market in Africa, according to the 2025 Enact Africa Organised Crime Index. Synthetic drugs refer to synthesised substances that are artificially modified to mimic the effects of existing drugs. Common synthetic drugs traded in South Africa include methamphetamine, or tik; methcathinone, known as CAT; Mandrax; and Nyaope, a cocktail of low-grade heroin mixed with cannabis. [Newsday]
New Durban theme park could be a big mistake: The former operator of Durban’s Funworld has expressed doubts about the sustainability and financial viability of eThekwini Municipality’s new R1 billion theme park, planned for the same site. He calls the project “possibly another big mistake,” citing concerns over high costs, profitability, and attracting international spending. [Moneyweb]
Seven international bidders for independent transmission project (ITP) programme: South Africa has selected seven international pre-qualified bidders from an initial pool of 17 respondents for the prequalification phase of its inaugural Independent Transmission Project (ITP) program. A request for proposals (RfP) for this project is set to be launched in the second half of 2026. [Engineering News]
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