The quarter ending May 2025 saw the JSE All Share Index close at a high of 94330 which is well above the previous quarter’s closing. We have seen a significant increase in stock market value as well as a strengthening rand which is positive to note.
It has taken three attempts by the Minister of Finance, Mr Enoch Godongwana to get the budget across the line and as yet, it is still not fully approved by Parliament. The deadline for the final revised national budget to be adopted by Parliament, according to statutory regulations, is the end of July. The economic challenges and political tensions being faced by South Africa, make the budget a critical test of governance and unity.
The recent meeting in the Oval Office between US President Donald Trump and our own President Cyril Ramaphosa, drew special attention to the extremely high levels of crime in South Africa and the unfriendly investor landscape. President Ramaphosa returned from this trip and doubled down on the Black Economic Empowerment (BEE) legislation which has caused the South African growth rate to remain subdued. These policies have led to South Africa having one of the highest unemployment rates globally, which currently stands at 32%, as well as one of the lowest economic growth rates for an emerging market.
The South African government also has the highest number of cabinet members, but the refusal by government to trim this bloated cabinet has resulted in government debt increasing significantly. One can only hope that with guidance from the Government of National Unity (GNU), they will look to trim this incredibly expensive cost to the economy. The unfortunate and very dated policies of the ANC, have caused growth in South Africa to remain stubbornly low and unemployment the highest in the world!
Internationally, Donald Trump continues his trade wars and although the US courts have stalled his implementation of trade tariffs, he continues to force people to the negotiating table. As a result, we have seen a weakening of the US dollar and it remains to be seen whether or not these trade wars will benefit the US economy or cause a global slowdown in terms of trade.
In the United Kingdom, under the new labour government, there are ever increasing taxes being implemented. Notably, farmers will be impacted by changes to inheritance tax on farms which were previously protected under Agricultural Property Relief (APR). From April 2026, the full 100% APR relief will only apply to the first £1 million of combined agricultural and business property.
The war with Ukraine continues to grind on with Russia pushing to take as much territory as possible before being forced to the negotiating table. Russian economy is indeed proving to be resilient having incurred sanctions for some time.
The Chinese economy has enjoyed somewhat of a resurgence particularly in the tech sector which has greatly benefited Naspers in South Africa. The investment space is still experiencing significant performance of AI related specific stocks although development of alternative tech remains a vulnerability.
Below is an indication of how the Global Bourses have fared over the last few quarters:
The below graph tracks the performance of the Rand against the US Dollar over an eight-year period:
The below graph tracks the performance of the JSE All Share Index over an eight-year period: 
The implementation of the COFI Act (Conduct of Financial Institutions Act) seems to have stalled for the time being. Correspondence from the regulator suggests that the financial services industry should start preparing despite not having sight of the actual act, which leaves most scratching their heads.
Further cause for frustration is the offices of the Master of the High Court, where we have seen significant delays in the registration and administration of trusts as well as estate administration.
The Financial Intelligence Centre has recently conducted inspections on a number of the larger institutions, resulting in some eye watering fines for lax money laundering controls within these entities. In most instances, there hasn’t been any proof of actual money laundering or wrong doing, the findings were that they had poor controls in place.
Whilst we seem to be over-whelmed by numerous challenges, locally and globally, we South Africans have always been resilient in the face of adversity. With this in mind, a few quotes to remind us that even the toughest challenges can be overcome with perseverance, determination and courage.
“It does not matter how slowly you go, as long as you do not stop.” – Confucius
“The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” – Winston Churchill
“It always seems impossible until it’s done.” – Nelson Mandela