The Stears Weekly Macroeconomic Report highlights the macroeconomic trends and policy shifts shaping the African investment landscape, helping you make informed decisions in dynamic markets.
Country Updates
South Africa
- Foreign Exchange: The South African rand appreciated by 1.1% w/w, closing at R18.0/$ compared to last week’s R18.2/$. However, a stronger US dollar in the weeks ahead may negatively affect the rand's performance. Q4 2024 forecast: R17.2/$.
- Inflation: October’s inflation rate declined to 2.8% (September: 3.8%), marking a four-year low driven by reduced food and fuel costs. Lower living expenses are expected to boost disposable incomes and further reduce unemployment, which dropped from 33.5% in Q2 2024 to 32.1% in Q3 2024.
- Interest Rates: Reflecting the decline in inflation, the South African Reserve Bank (SARB) reduced its repo rate by 25 basis points to 7.75% on November 21, marking the second rate cut in 2024.
- Sovereign Credit Ratings: S&P Global Ratings upgraded South Africa’s outlook
