South Africa’s currency, stocks, and bonds continued to rally on Thursday as investors responded positively to signs of fiscal discipline following the government’s medium-term budget policy statement.
The rand temporarily dropped below the significant R17/USD mark for the first time since February 2023, reaching 16.955—its strongest level in more than two years.
The JSE’s Top 40 index increased by 2.3%, while the yield on the 2035 government bond fell by six basis points to 8.6%, the lowest level since early 2021.
For years, South Africa’s National Treasury has asked investors for patience as it implemented slow and sometimes unpopular measures for fiscal consolidation while addressing rising debt in a weak growth economy.
This effort now appears to be yielding results. The rand has appreciated over 11% year-to-date against a declining dollar, outperforming the broader emerging market index, which has risen just over 6%.
On Friday, 14 November, the rand was trading at R17.02 to the dollar, R22.37 to the pound and 19.81 to the euro. Oil was trading slightly lower at $63.95 a barrel.
5 important things happening in South Africa today
VAT could be slashed to 6%: A proposed amendment to South Africa’s VAT system aims to eliminate VAT refund fraud and reduce the rate from 15% to as low as 6%. The new system would disallow VAT input claims, relying solely on output tax payments. PKF, a mid-tier accounting firm, suggested this alternative in response to the VAT Modernisation Project, which mandates real-time VAT reporting for all businesses. [Moneyweb]
Another major world leader snubs South Africa: China’s President Xi Jinping will not attend the upcoming G20 summit in Johannesburg next week. Instead, Premier Li Qiang will represent Beijing at the meeting. Xi’s absence places him among a small but growing group of leaders who are also skipping the summit. [Business Day]
Post Office looking for private partners: The government is seeking private sector partnerships with the Post Office for courier and postal services, including infrastructure leasing. Minister Solly Malatsi announced the Request for Information, emphasising the end of state bailouts. [News24]
Eskom taking over in 47 South African towns and cities: Eskom will assume control of electricity distribution in 47 South African municipalities through distribution agency agreements (DAAs), as revealed in the 2025 Medium-Term Budget Policy Statement. Of the municipalities that applied for the municipal debt-relief program, 47 are still in default, while 24 have qualified for a write-off after 12 months of payments, and 21 have maintained payments as of 7 May 2025. [MyBroadband]
South Africa bidding to host Olympic Games: The South African government has announced its intention to bid for the 2036 or 2040 Olympic and Paralympic Games. Minister Khumbudzo Ntshaveni revealed the plan during a media briefing following a cabinet meeting on 13 November. [Newsday]
