Friday morning wrap
South Africa: economy, business and corporate news
South Africa’s recovery is still intact, but it is slowing. Inflation is easing, the rand has firmed and some companies are still posting strong results, yet higher rates, weaker demand and patchy growth continue to bite.
The rand strengthened to a six-month high against the dollar this week, touching R15.95/$ after strong demand for government bonds and cooling inflation. At Tuesday’s Treasury auction, primary dealers placed orders for R14.79 billion of debt — nearly six times the R2.55 billion on offer. The JSE All Share Index closed the week at about 116,828, with the Top 40 at 109,535. The 3-month JIBAR rate held at 7.00%, while the repo rate remains at 7.0% after the SARB’s July decision to hold.
Inflation kept drifting lower: consumer price inflation fell to 4.3% in July from 5.0% in June, while producer price inflation dropped to 5.7% from 7.5%.
Cement is still the clue to confidence. PPC extended CEO Matias Cardarelli’s contract to 31 March 2030 as the company pushes ahead with the next phase of its turnaround. The bigger opportunity still lies in completing and commissioning the new integrated cement plant in the Western Cape, while improving performance in South Africa and growing in Zimbabwe.
Harmony Gold delivered a record financial year. Revenue surged 34% to R100 billion, headline earnings per share jumped 87% to R43.63, and the company declared a record final dividend. It also maintained production guidance for the 11th consecutive year, while the newly acquired CSA copper mine in Australia contributed 18,207 tonnes of copper.
Absa posted solid first-half 2026 results, with headline earnings rising 8% to a record R12.8 billion. Its South African unit remained the main engine of profit, while earnings from the rest of Africa were softer.
OUTsurance expects earnings to rise by up to 24% for the full year, helped by underwriting growth in South Africa, although its Australian business faced a tougher period due to natural disaster claims.
Blu Label reported a net loss after tax of R4.882 billion for the year ended 31 May 2026, largely because of Cell C restructuring and the separate listing, even though its core voucher businesses remained cash-generative.
The Industrial Development Corporation reported a group loss of about R4.7 billion for the year ended March 2026, with performance problems at subsidiaries including Foskor and Mozal weighing on results.
South Africa is also set to raise the dollar-based reference price for sugar imports to $785 a ton from $680, in a move aimed at shielding local growers from cheap foreign competition.
Quirky item of the week
Oxtail prices have surged after Argentine imports were disrupted by a technical certification problem. South Africa imports about 70% of its oxtail from Argentina, so the supply squeeze has been felt quickly in shops and restaurants.
Before you go
- Birthdays: This week’s musicians include Shania Twain, Florence Welch, Robert Plant and Van Morrison.
- Authors: Goethe, Tolstoy, Robertson Davies and Mary Shelley all have birthdays in the same stretch.
- A small joke: Why don’t scientists trust atoms? Because they make up everything.
- Quiz: Which planet in our solar system rotates on its side, with an axial tilt of 98 degrees?
- Answer: Uranus
A small stylistic note: this now reads cleanly and doesn’t over-explain itself, so it should work well as a Friday wrap.
Editorial Disclosure & Disclaimer
Financial News Daily is an independent business news syndicate and a wholly owned subsidiary of Idea Accelerator. We specialize in producing high-quality financial, environmental, and corporate news commentary for digital uplatforms, media outlets, and organizations. Financial News Daily does not provide investment, legal, or financial advice. Opinions expressed represent bona fide media commentary on matters of public and economic interest.
