Say goodbye to car licence discs and driving licence cards, and fury over new tax planned for South Africans
The rand strengthened on Tuesday after South Africa’s economy expanded more than expected in the first quarter of 2026.
However, the impact of the Iran war is likely to be reflected in the next economic data release. The rand traded at 16.4325 against the US dollar, up about 0.6%.
According to Statistics South Africa, the gross domestic product (GDP) grew by 0.5% quarter-on-quarter on a seasonally adjusted basis during the first three months of the year.
Economists polled by Reuters had predicted GDP growth of 0.3% quarter-on-quarter, down from 0.4% in the fourth quarter of 2025, and 1.8% year-on-year.
Lerato Ntuli, an economist at Anchor Capital, noted that the data largely predates the escalation of the conflict in the Middle East and does not yet account for the energy price shock and supply-side disruptions.
“Looking ahead, the combination of higher interest rates and elevated fuel costs is likely to continue eroding household purchasing power, which will put downward pressure on consumption and limit near-term economic growth.”
On the Johannesburg Stock Exchange, the Top-40 index was up 0.4%. Additionally, South Africa’s benchmark 2035 government bond strengthened, with the yield falling by 13.5 basis points to 8.605%.
On Wednesday, 10 June 2026, the rand was trading at R16.56 to the dollar, R22.16 to the pound, and R19.12 to the euro. Gold is trading lower at $4,173.52 an ounce, while oil prices were at $92.01 a barrel.
5 important things happening
Say goodbye to car licence discs and driving licence cards: The Road Traffic Management Corporation of South Africa (RTMC) is planning to move away from physical vehicle licence discs towards an electronic disc regime relying on number plate recognition. [MyBroadband]
Fury over new tax planned: Transport Minister Barbara Creecy faces strong opposition to her proposal for a new mandatory tax on annual vehicle licence renewals and registrations to support the struggling Road Accident Fund (RAF). The Democratic Alliance (DA) argues that this fee is inappropriate amid rising fuel prices and food inflation, stating that instead of addressing the RAF’s issues, the government is burdening hardworking South Africans. [Newsday]
New SOE owned by Eskom: Eskom has today launched Eskom Green, a renewable energy business that will eventually be unbundled and act as a stand-alone, wholly owned subsidiary. [Daily Investor]
CoJ spends only 49% of budget despite infrastructure collapse: The City of Johannesburg spent only 49% of its R8.43 billion capital budget for 2025/26 by the end of March, falling short of the 70% target, amid ongoing water and electricity outages due to infrastructure issues. [Business Day]
End of an era for PEP: Pepkor Holdings, a JSE-listed retail giant, announced the resignation of its board chair, Wendy Luhabe, effective June 30, 2026. Her departure marks the end of a seven-year tenure with the company. [Moneyweb]
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