Insights

South Africa and the United States held key elections last week. Global markets reacted strongly to the massive swing away from President Trump's Republican Party in the US. In South Africa people also voted for change, but we’ll have to wait for coalition talks to conclude before reflecting on investment implications.

While 2025 was a terrific year for South African investors, 2026 has been tough going. Oil, datacentres and debt have dominated the market and economic landscape this year, creating crosscurrents for investors.

The 2026 MTBPS took place against the difficult backdrop of elevated global bond yields, an energy shock, and rising inflation. Nonetheless, it stayed the course on fiscal consolidation, and a 3% budget deficit and declining debt ratio is in sight. It also maintains a strong focus on growth enhancing reforms, which bodes well for longer-term return expectations on South African assets.