Finance News Update | 07 Jan 2026
- Phophi

- 3 days ago
- 2 min read

General Headlines
SRD Grant Faces Uncertain Future Beyond 2027
National Treasury has indicated that the R370 Social Relief of Distress (SRD) grant may not continue beyond March 2027, with no formal decision yet announced. Originally introduced as a temporary COVID-19 relief measure, the grant has been repeatedly extended at a cost of roughly R40 billion annually. While government has long maintained that the SRD grant was never meant to be permanent, it has proposed replacing it with a workseeker-style grant, though no timelines or implementation details have been confirmed. (Business Tech)
Eskom Shifts Focus From Stability to Cost-Cutting
With South Africa’s power system stabilised and load shedding avoided for more than 325 days, Eskom is now prioritising reducing electricity production costs. Senior manager Eric Shunmugam said the utility has recovered nearly 7,500MW of generation capacity since winter 2024. In parallel, Energy Minister Kgosientsho Ramokgopa is reviewing the country’s electricity pricing framework, with finalisation expected by March 2026. (Business Tech)
Crumbling Water Infrastructure Signals Johannesburg’s Decline
Johannesburg’s worsening water shortages are being intensified by poor maintenance of municipal infrastructure under Joburg Water, rather than solely by supply constraints from Rand Water. Failures at reservoirs and inefficient distribution systems have left the city vulnerable, highlighting deeper governance and infrastructure challenges that reflect the broader deterioration of South Africa’s economic hub. (Daily Investor)
Markets & Investments
Rand Surges to Three-Year High on Improved Sentiment
The rand has strengthened sharply, gaining 14% against the US dollar in 2025 and continuing its upward momentum into 2026. The rally has been supported by record precious metal prices and stronger investor confidence following South Africa’s credit rating upgrade by S&P Global Ratings. Although technical indicators suggest the currency is overbought, options markets indicate that further gains may still be possible. (Business Tech)
Property & Real Assets
Foreign Buyers Tighten Grip on Cape Town’s Prime Property Market
International buyers are playing an increasingly influential role in Cape Town’s Atlantic Seaboard and City Bowl property markets, accounting for about 25% of total sales value. According to Seeff Property Group, foreign purchasers contributed roughly R2.8 billion of the R11.3 billion in transactions over the past year. While European buyers remain dominant, demand is now expanding globally and across the African continent. (Business Tech)
South Africa’s Listed Property Outperforms Global Peers
South Africa’s listed property sector has emerged as a global standout, outperforming markets in the US, UK, Australia and Japan. Data from Global Property Research shows local REITs delivered a 9.7% return in November 2025, lifting year-to-date performance to 46.2%. Despite the strong gains, volatility levels remain in line with international averages, suggesting returns have not come with disproportionate risk. (Business Tech)


