Contents

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

Executive summary

• In September, Southern African nations demonstrated resilience, driven by better macroeconomic conditions and commodity-related gains, despite challenges to trade, fiscal, and foreign exchange supply. These events impacted currency dynamics. Notably, the kwacha depreciated 1.1% month-over-month (m/m) to close September, while the rand appreciated 2.8%. The rand was supported by higher gold prices and a weaker dollar after the US Fed’s rate cut, and the gradual uptick in global copper prices tempered the loss on the kwacha amidst heightened domestic forex demand.
  
• The inflation picture was positive, as South Africa’s August inflation moderated to 3.3%, edging closer to the SARB’s 3% target floor, as food prices, especially beef, continued their downward trend. In Zambia, inflation decreased for the fifth consecutive month in September to 12.3%, driven by the kwacha’s 17% YTD appreciation and favourable base effects. The improvement in the inflation