Cape Times

South Africa’s slow and uneven economic recovery is expected to continue through 2026, but remains highly vulnerable to global shocks, policy uncertainty and entrenched structural constraints. This is according to the International Monetary Fund’s latest World Economic Outlook (WEO) update released on Monday, which revised slightly upwards the country's growth prospects. The IMF forecasts South Africa’s economy to grow by 1.4% in 2026, edging up slightly to 1.5% in 2027. While this represents a modest 0.2 percentage points upward revision from earlier projections of 1.2%, it remains well below both the sub-Saharan African average and the level of growth needed to make meaningful progress in tackling unemployment, poverty and inequality. The outlook places South Africa near the weaker end of emerging market performance, even as the IMF expects global growth…

Global value chains have entered a phase of structural volatility, forcing companies and governments to rethink how and where they invest, produce and trade, according to a World Economic Forum (WEF) report released on Monday. The report, Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility, developed in collaboration with consultancy Kearney, finds that disruption is no longer a cyclical shock but a defining feature of the global economy. Nearly three in four business leaders surveyed now prioritise resilience investments, with 74% viewing resilience not as a cost but as a driver of long-term growth. Set against a backdrop of intensifying geopolitical fragmentation, accelerating technological change and mounting resource constraints, the report argued that competitiveness in the coming decade will depend less on efficiency alone and more on foresight,…

Experts mostly expect interest rates to remain unchanged next week. The Monetary Policy Committee (MPC) is expected to meet next week Thursday for the first interest rate announcement of 2026. Neil Roets, the CEO of Debt Rescue, said that they believe that, while a further interest rate cut remains possible, the balance of factors suggests it is more likely that the South African Reserve Bank (SARB) will keep interest rates unchanged at the next MPC meeting. “There are several moving parts influencing this decision, and the SARB will ultimately weigh both domestic inflation conditions and global risks before taking the next step in the rate-cutting cycle.” Roets added that the SARB has reduced interest rates by a cumulative 150 basis points since the start of the current cutting cycle —…

Gold responds to US President Donald Trump’s comments over imposing tariffs on European countries JSE-listed gold mining share prices tracked an explosive surge in the precious metal price Monday following an escalation of US President Donald Trump's aims for Greenland. Gold jumped as much as 2.1% to a record $4 690 per ounce, while silver surged as much as 4.4% after it breached $94.35 for the first time, as investors rushed into perceived "safe haven" stores of wealth. This after Trump said over the weekend he would impose tariffs on eight European countries, including Germany, France and the UK, from next month, unless they support his ambition to take control of the Arctic island. AngloGold's share price traded 2.66% higher to R1 645.12 in the afternoon, Harmony's increased 2.09% to…

South Africa understands the transformative power of dialogue. From overcoming a legacy of division through constructive engagement to securing key commitments during the G20 Summit in Johannesburg last year, the nation has repeatedly shown that conversation, consensus, and collective action can turn challenges into opportunities. The country will bring the same spirit to the global stage at the 56th World Economic Forum (WEF) taking place in Davos-Klosters from 19 to 23 January 2026. Through our participation, we aim to foster practical solutions for stability and shared growth in a global arena that is marked by sharpening geopolitical rivalry and rapid technological disruption. Convened under the theme “A Spirit of Dialogue,” WEF 2026 offers a unique platform for leaders from government, business, civil society, science, and culture from participating countries to…

South Africa's house price sales growth this year is likely to feature a story of green shoots and more of the two-speed trend, but there is reason to be cautiously optimistic, said Renier Kriek, MD of home loan provider Sentinel Homes. "While we likely won't have a property boom, we're seeing encouraging signs of recovery. The year will likely see a continuation of the two-speed market we have experienced in SA for the past decade or so, with coastal areas and semigration destinations showing robustness, while house markets lag in inland areas and localities with perceived poor service delivery," he said. Rhys Dyer, the CEO of Ooba Group, a home loan origination and mortgage group, said trends such as a return to offices, which is boosting some suburban house markets,…