Financial News Daily – Friday Wrap | Week ending 11 September 2026
South Africa’s economy continues to trudge along at a snail’s pace. GDP contracted by 0.2% in the second quarter, ending six consecutive quarters of growth. It raises an already familiar question back into focus: how can a country with so many evident economic problems continue to perform so poorly?
There are plenty of explanations, from weak investment and infrastructure constraints to high borrowing costs and rising input prices. But economics is not the only area in which governments are being judged on whether they are dealing with problems that are increasingly difficult to ignore.
Germany and Italy provided an interesting political comparison this week. Immigration has become a major issue in both countries and has helped propel right-wing parties to greater influence. In Germany, the AfD has built much of its support around opposition to immigration. Italy’s Prime Minister Giorgia Meloni, who leads a right-wing government, has also spoken openly about the pressures created by immigration.
What struck me was not simply the politics of immigration, but the warning Meloni gave about the consequences of weak or failed policies associated with the left. When governments appear unwilling or unable to deal with problems that voters can see for themselves, political support can shift in unexpected directions.
South Africa has its own version of this problem. Immigration has largely been left to activist groups and public debate while large-scale immigration has continued for years. Government statements about access to hospitals and other public services have often seemed disconnected from the practical consequences of overcrowding and pressure on already stretched resources.
Immigration is only one example. The same question applies to many of South Africa’s problems: when government does not deal with them effectively, who eventually pays the price?
Anyway, on to business.
Business Briefs
Standard Bank Group — Record interim results allowed the bank to return R14 billion to shareholders in interim dividends.
Absa Group — The bank declared a cash dividend of R7 billion for the reporting period, reflecting continued profitability despite a difficult economy.
Discovery — Annual operating profit rose 17% to R17.75 billion, with Discovery Bank moving into a R370 million profit.
Pan African Resources — The gold producer expects full-year earnings to more than double, helped by higher production and an average gold price of $4,235 an ounce.
Harmony Gold — Net profit more than doubled to R29.5 billion for the year, while shareholders received a total dividend of R12.80 a share.
Anheuser-Busch InBev — Beer volumes increased 1.1% in the second quarter, while underlying earnings per share rose 23.4%.
Inflation — Consumer inflation rose to 4.3% in July. The Reserve Bank’s Monetary Policy Committee meets on 23 September, with the repo rate currently at 7%.
Fuel — Petrol rose by R1.29 a litre on 2 September, while diesel increased by as much as R3.15 as higher international oil prices fed through to the pump.
GDP — The economy contracted 0.2% in the second quarter, ending six consecutive quarters of growth and underlining just how little momentum there is in the economy.
Markets and oil — Global markets remained volatile as Brent crude moved above $100 a barrel amid renewed geopolitical tensions in the Middle East.
Around the world
US Federal Reserve — Investors continued to assess the outlook for US interest rates as softer inflation pressures compete with renewed concerns about energy prices.
Oil — Brent crude pushed above $100 a barrel as geopolitical tensions in the Middle East raised fresh concerns about global energy supplies.
Global markets — Equity markets remained volatile as investors weighed interest-rate expectations against rising energy costs and geopolitical risk.
Birthdays
Rock musicians
Joe Strummer (1952) — Co-founder and frontman of punk rock band The Clash.
Glenn Hughes (1951) — Bassist and vocalist best known for his work with Deep Purple and Black Country Communion.
Kim Shattuck (1963) — Singer, guitarist and songwriter best known as the frontwoman of The Muffs.
Authors
Ray Bradbury (1920) — American science-fiction writer whose best-known works include Fahrenheit 451 and The Martian Chronicles.
Emilio Salgari (1862) — Italian adventure novelist and creator of the fictional character Sandokan.
Xavier de Maistre (1763) — French writer known for A Journey Around My Room.
Light relief
I told my accountant that I wanted to start a business making metre sticks. He said, “That’s a good idea, but it’s going to be a long-term investment.”
Why did the banker become a gardener? He wanted to improve his cash flow and grow his assets.
Why don’t scientists trust atoms? Because they make up everything.
Weird and wonderful
Wombats — They are the only known animals that produce cube-shaped droppings, which help prevent them from rolling away when marking their territory.
Spider silk — A strand of spider silk can be stronger than a steel wire of the same thickness.
Deep thought
“The heaviest burden is not what we carry in our hands, but what we refuse to set down in our hearts.”
Friday quiz
Question: What is the only country in South America where Portuguese is the official language?
Answer: Brazil.
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