Contents

• Executive Summary 
• South Africa
• Zambia
• Quarterly & Annual Data Tables

Executive Summary

• Economic performance across Southern African markets (South Africa and Zambia) was mixed across key macroeconomic indicators in July. The South African rand depreciated by 1.5%, reversing a 0.4% month-on-month appreciation in June, while Zambia’s kwacha strengthened further by 3.7%, extending its 11.4% gain in June.
• Divergent fundamentals drove the currency movements. In South Africa, the rand weakened amid heightened global uncertainty. The US Federal Reserve’s decision to hold its benchmark interest rate steady, maintaining a strong dollar, intensified downward pressure on emerging market currencies. Additionally, Washington’s plan to implement a 30% tariff on South African exports starting August 2025 (targeting autos, steel, and wine) dampened investor sentiment. As a result, the South African Reserve Bank revised its 2025 GDP growth forecast down to 1% from 1.2%.
• In contrast, Zambia’s currency was buoyed by higher copper prices, improved capital inflows, a