🇿🇦 South Africa's Economic Pulse: Week of 19-23 May 2025
Category Economic Pulse
By Loy de Jager | Principal, Upside Properties
📌 Key Local Developments
Ramaphosa-Trump Oval Office Showdown Sparks Diplomatic Tensions
On 21 May, President Cyril Ramaphosa met with U.S. President Donald Trump at the White House. The meeting turned confrontational as Trump presented a video alleging violence against white South African farmers. Ramaphosa refuted the claims, emphasizing South Africa's commitment to lawful land reform and property rights. The incident has strained U.S/South Africa relations and introduced uncertainty regarding future trade agreements.
On 21 May, President Cyril Ramaphosa met with U.S. President Donald Trump at the White House. The meeting turned confrontational as Trump presented a video alleging violence against white South African farmers. Ramaphosa refuted the claims, emphasizing South Africa's commitment to lawful land reform and property rights. The incident has strained U.S/South Africa relations and introduced uncertainty regarding future trade agreements.
South Africa Sets $100 Oil Price Threshold for Crude Reserve Sales
South Africa announced it would consider selling additional crude oil from its strategic reserves only if global oil prices reach approximately $100 per barrel. With Brent crude currently trading around $66, the government aims to maximize revenue from its remaining 7.7 million barrels. This decision reflects a cautious approach amid global market volatility.
South Africa announced it would consider selling additional crude oil from its strategic reserves only if global oil prices reach approximately $100 per barrel. With Brent crude currently trading around $66, the government aims to maximize revenue from its remaining 7.7 million barrels. This decision reflects a cautious approach amid global market volatility.
260 Miners Rescued After Johannesburg Shaft Incident
On 22 May, an incident at a gold mine near Johannesburg left approximately 260 miners trapped underground. All miners were safely rescued without injuries. The event underscores ongoing concerns about mining safety standards and operational risks in South Africa's mining sector.
On 22 May, an incident at a gold mine near Johannesburg left approximately 260 miners trapped underground. All miners were safely rescued without injuries. The event underscores ongoing concerns about mining safety standards and operational risks in South Africa's mining sector.
🏢 Commercial & Industrial Property Market
Growthpoint Expands Logistics Portfolio with Arterial Industrial Estate Phase 2
Growthpoint Properties has commenced the second phase of its Arterial Industrial Estate in Blackheath, Cape Town. This phase adds 21,840 square meters of lettable space, featuring six warehouse units ranging from 2,945 to 5,713 square meters. The estate's strategic location offers exceptional access to key transportation routes, including the R300, N1, and N2 highways, as well as Cape Town International Airport and the region's seaports. The development emphasizes sustainability, boasting 24-hour security, flexible warehouse and office space, solar panels, and a four-star Green Star certification from the Green Building Council of South Africa.
Growthpoint Properties has commenced the second phase of its Arterial Industrial Estate in Blackheath, Cape Town. This phase adds 21,840 square meters of lettable space, featuring six warehouse units ranging from 2,945 to 5,713 square meters. The estate's strategic location offers exceptional access to key transportation routes, including the R300, N1, and N2 highways, as well as Cape Town International Airport and the region's seaports. The development emphasizes sustainability, boasting 24-hour security, flexible warehouse and office space, solar panels, and a four-star Green Star certification from the Green Building Council of South Africa.
Cape Town's Office Sector Sees Record Low Vacancies
Cape Town's office market has recorded its lowest vacancy rate in 15 years, driven by high demand and limited supply. This has led to increased prices and yields, making it an attractive market for investors.
Cape Town's office market has recorded its lowest vacancy rate in 15 years, driven by high demand and limited supply. This has led to increased prices and yields, making it an attractive market for investors.
Gauteng's Commercial Market Shows Signs of Recovery
Johannesburg's commercial property market is rebounding, particularly in areas like Waterfall and Rosebank. The return to office work and demand for co-working spaces are contributing to this positive trend.
Johannesburg's commercial property market is rebounding, particularly in areas like Waterfall and Rosebank. The return to office work and demand for co-working spaces are contributing to this positive trend.
Industrial Property Remains a Strong Performer
The industrial property sector continues to outperform, driven by strong demand, limited supply, and rising construction costs. Areas like Ekurhuleni and Atlantis are emerging as key industrial hubs.
The industrial property sector continues to outperform, driven by strong demand, limited supply, and rising construction costs. Areas like Ekurhuleni and Atlantis are emerging as key industrial hubs.
🌍 Global Economic Factors
Moody's Downgrades U.S. Credit Rating, Triggering Market Turmoil
Moody's downgraded the United States' sovereign credit rating due to escalating national debt concerns. The downgrade led to significant declines in global stock markets and increased demand for safe-haven assets like gold and government bonds. This development may influence investor behavior and capital flows worldwide.
Moody's downgraded the United States' sovereign credit rating due to escalating national debt concerns. The downgrade led to significant declines in global stock markets and increased demand for safe-haven assets like gold and government bonds. This development may influence investor behavior and capital flows worldwide.
Trump Threatens 50% Tariffs on EU and Foreign-Made iPhones
President Trump escalated trade tensions by threatening a 50% tariff on European Union imports and foreign-manufactured iPhones. The announcement caused U.S. and European stocks to fall, with investors seeking refuge in safer assets. These potential tariffs could disrupt global supply chains and impact international trade dynamics.
President Trump escalated trade tensions by threatening a 50% tariff on European Union imports and foreign-manufactured iPhones. The announcement caused U.S. and European stocks to fall, with investors seeking refuge in safer assets. These potential tariffs could disrupt global supply chains and impact international trade dynamics.
🌟 Upside of the Week
South Africa Hosts World Rally-Raid Championship
From 18 to 24 May, South Africa hosted a round of the prestigious World Rally-Raid Championship, known as the South Africa Safari Rally. The event, starting from Sun City and traversing diverse terrains, showcased the country's capacity to host major international sporting events. This not only boosts tourism but also underscores South Africa's appeal as a global destination for adventure sports.
From 18 to 24 May, South Africa hosted a round of the prestigious World Rally-Raid Championship, known as the South Africa Safari Rally. The event, starting from Sun City and traversing diverse terrains, showcased the country's capacity to host major international sporting events. This not only boosts tourism but also underscores South Africa's appeal as a global destination for adventure sports.
Author: Loy de Jager
