Ultra-luxury hotel coming to the Eastern Cape, and new beneficial ownership rules for companies
The rand weakened on Friday as traders awaited an inflation report due next week, which is expected to provide fresh insights into the health of South Africa’s economy.
Traders are also expecting indications regarding the central bank’s potential rate-cutting strategy for the year.
The rand traded at 16.4050 against the dollar, down roughly 0.4% from Thursday’s close, as the market cautiously awaited December’s consumer inflation figures.
Inflation declined for the first time in three months in November, to 3.5%, and remained within the one percentage point tolerance band of the 3% target.
In its last meeting, South Africa’s central bank reduced its main lending rate by 25 basis points to 6.75% in a unanimous decision, citing the improved inflation outlook as justification for a less restrictive policy stance.
The dollar remained flat against a basket of currencies, while global investors continued to monitor US President Donald Trump’s remarks on Iran and statements from Federal Reserve Chair Jerome Powell.
As with other risk-sensitive currencies, the rand often responds to global factors, including US policies. On the Johannesburg Stock Exchange, the Top-40 index was down 0.9%.
On Monday, 19 January, the rand is trading at R16.40 to the dollar, R21.97 to the pound, and R19.08 to the euro. Gold is trading slightly lower at $4,665.10 per ounce, while oil is up to $64.29 a barrel.
5 important things happening in South Africa today
Luxury hotel coming to the Eastern Cape: South African luxury hotel group, Mantis Collection, is planning to open its new, ultra-luxury resort in the Eastern Cape this year. The Mantis Hiddn in Addo resort is a totally off-grid mountain lodge. It will open its doors to guests on March 1 2026. [Newsday]
New beneficial ownership rules: Companies that do not submit securities and beneficial ownership registers to the Companies & Intellectual Property Commission (CIPC) may face penalties if proposed legislation by the Treasury is enacted. The draft General Laws (Anti-money Laundering and Combating Terrorism Financing) Amendment Bill was released for public comment last week. [Business Day]
Trade war is back: Global markets are facing renewed volatility this week after US President Donald Trump announced plans to impose tariffs on eight European nations until the US is permitted to purchase Greenland. This tariff will increase if a deal is not reached. [News24]
South Africa’s electricity problem: Former South African President Thabo Mbeki said he is happy that Eskom has halted load-shedding, but stressed that this won’t be sufficient for strong economic growth. He warned that increasing growth to 1.5% could lead to electricity shortages, as there is not enough capacity to support it. Mbeki highlighted that adopting new technologies and investing in data centres requires substantial electricity, stating, “If we don’t have the electricity, we can’t do it.” [MyBroadband]
Another New Chinese car coming to South Africa: Another sub-brand from the Chinese powerhouse, Chery Group Holdings, is scheduled for an imminent release into the local market when Lepas start to hit South African roads next month. The first of these will be the L4, which will lead the way for two more models, namely the L6 and the brand’s flagship, the L8. [TopAuto]
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