South African markets soar despite US tariffs

South African financial markets have outperformed expectations, with the Johannesburg Stock Exchange (JSE) reaching record highs and the rand/dollar exchange rate rising despite a threat to exports from 30% US tariffs.

However, growth in Africa's largest and most industrialised economy has been stuck at around 1% for a decade and the outlook is uncertain, despite promises of reforms from the coalition government put together a month after May 2024's election.

These include reforms on freight and rail, boosting power generation and improving skills for South Africans left out of the job market.

Business indices show private sector hesitation to invest. South Africa's economy grew 0.8% in the second quarter of 2025, its fastest in two years.

Improved ports

The government wants 3% growth within three years. The central bank forecasts 2% by 2027.