Finance News Update | 09 Feb 2026
- Phophi K

- Feb 9
- 2 min read

General Headlines
Cape Town goes private to boost electricity and water supply
Cape Town plans to issue tenders for several large-scale projects aimed at reducing electricity costs and strengthening water security in South Africa’s second-largest city and key tourism hub. The municipality will this month begin the process of appointing an electricity trading company to secure additional power. Later in the year, private firms will be invited to bid on multibillion-rand desalination and water re-usage plants. The move represents a strategic shift, effectively outsourcing power procurement to a private entity capable of sourcing electricity from multiple providers, as the city continues efforts to challenge Eskom’s long-standing monopoly. (Engineering News)
Bad news for electricity users
South Africa’s energy regulator, Nersa, has confirmed that Eskom’s average electricity tariffs will increase by 8.76% this year, higher than the previously announced 5.36%. The adjustment follows a revenue reassessment intended to correct earlier regulatory errors. The revised tariffs will take effect on 1 April for direct Eskom customers and on 1 July for municipal customers. (Business Tech)
Markets & Investments
South Africa and China sign trade and investment framework agreement tax
South Africa and China have signed a framework trade and investment agreement aimed at expanding duty-free access for more South African products into the Chinese market and facilitating greater Chinese investment in South Africa. The China-Africa Economic Partnership Agreement (CAEPA) was signed in Beijing on 6 February. According to the Department of Trade, Industry and Competition, the agreement covers trade, investment and multilateral cooperation, including collaboration in new energy. The department said the CAEPA is intended to strengthen bilateral trade relations while incorporating safeguards to protect South Africa’s industrial capacity. (Engineering News)
New European interest rates
South Africa is considering the use of new European Central Bank repo lines, citing strong trade and investment ties with Europe, according to Reserve Bank Governor Lesetja Kganyago. He noted that the decision to keep domestic interest rates unchanged at 6.75% means they remain some distance from the terminal rate. Policymakers are awaiting further moderation in inflation, with current projections pointing to two 25-basis-point rate cuts this year and another next year. (CNBC)
Property & Real Assets
SA REITS start 2026 strong as investors chase yield-sensitive assets
South African REITs continued their positive momentum in January 2026, delivering a total return of 0.9% for the month, according to the SA REIT Association. While underperforming the broader equity market, where the All Share Index rose 3.7%, the sector’s performance signals ongoing stabilisation following an exceptional 2025. Returns were driven mainly by share-price gains rather than income, reflecting improved sentiment amid easing inflation expectations and a more favourable global interest-rate environment. (Property Wheel)



