South Africa’s second biggest medical aid under threat, and plan to withdraw proposed tax increases
The rand strengthened in early trading on Thursday following the release of an interim agreement signed by the United States and Iran to end the war.
This eased geopolitical tensions and boosted investor confidence. The rand traded at 16.3175 against the dollar, approximately 0.4% above its previous close.
The 14-point agreement between the US and Iran extends a ceasefire, initially announced in April, by an additional 60 days, including in Lebanon, to allow both sides to negotiate a final truce.
Following the signing of this interim agreement, oil prices fell by more than $1 per barrel on Thursday.
The agreement is expected to end the Iran war, reopen the Strait of Hormuz, and lift US sanctions on Tehran’s oil, which would improve the oil supply outlook.
Analysts noted that, given expectations that the Strait of Hormuz will reopen following the digital signing of a peace deal this week, the recent acceleration in headline inflation is expected to lose momentum, with fuel inflation moderating in July.
On Wednesday, Statistics South Africa released May inflation data, indicating slower-than-expected price growth, which analysts believe has reduced the likelihood of another interest rate hike by the central bank in the coming month.
In early deals, South Africa’s benchmark 2035 government bond remained flat, with a yield of 8.245%.
On Friday, 19 June 2026, the rand was trading at R16.51 to the dollar, R21.75 to the pound, and R18.88 to the euro. Gold is trading lower at $4,136.60 an ounce, while oil prices were at $79.53 a barrel.
5 important things happening
One of South Africa’s largest medical aid schemes under threat: The medical schemes regulator has raised concerns about GEMS’s plan to lower contributions, saying it’s financially unsound and risks dropping its solvency ratio below the 25% minimum. Projections indicate a decline to 21%-22% with no recovery plan. GEMS’s solvency ratio was 24.7% at the end of 2025, managing R65 billion in annual contributions. [Business Day]
Plan to withdraw proposed tax increases: President Cyril Ramaphosa announced that the government will support economic growth by withdrawing proposed tax increases for the current financial year and 2026/27, while also accelerating public investment. Further details on the specific tax increases were not provided. [Newsday]
Naming and shaming businesses that employ undocumented workers: Deputy President Paul Mashatile has suggested the possibility of naming and shaming businesses that hire undocumented migrants, alongside imposing hefty fines for violating labour laws. [EWN]
Big changes for some property owners in Cape Town: Cape Town’s new by-law will impose commercial rates on properties rented short-term for over 50% of the year, effective July 1, 2027. [Daily Investor]
Home Affairs cracks down on smart ID and passport booking syndicates: The Department of Home Affairs recently made a significant change to its online booking platform for smart IDs and passports. Home Affairs minister Leon Schreiber announced upgrades to the MyHomeAffairsOnline platform in May 2026 to address abuse by unscrupulous individuals. [MyBroadband]
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