Contents

• Executive summary
• South Africa
• Zambia
• Quarterly & annual data tables

Executive summary

• In October, Southern African markets recorded strong performances. Inflationary pressures were relatively contained, evidenced by Zambia's sixth consecutive monthly decline in inflation to 11.9% in October, supported by currency appreciation and lower commodity prices. In South Africa, inflation remains within the SARB’s 3-6% target, though food and energy price pressures loom, informing our forecast of an increase in October’s headline figure to 3.86%.
• Currency dynamics were also positive, as the rand remained relatively stable following South Africa's removal from the FATF grey list after three years, driven by stronger anti-money laundering (AML/CFT) legislation and regulations. The expectation of a weaker US dollar, as geopolitical tensions linger and a potential US Fed rate cut, further supports the rand’s stability, especially as gold is bound to continue its price rally.
• The Zambian kwacha, also benefiting from gold’s upsurge, appreciated by 7.4% m/m