Cape Town – The rand is facing potential weakening against the US dollar, with forecasts predicting it could reach R21.40 in 2024 and even R21.90 by the following year.
Factors contributing to this include a strong US economy, inflation concerns, delayed rate cuts, and ongoing conflict in the Middle East, The Citizen reported, quoting Annabel Bishop, chief economist at Investec.
The delays in US rate cuts and uncertainties surrounding South Africa’s upcoming election are also impacting the rand’s strength.
Additionally, geopolitical tensions and political uncertainty are contributing to the currency’s volatility.
Despite various scenarios, including best and worst-case scenarios, uncertainty in the global economy remains a significant factor.
Meanwhile, President Cyril Ramaphosa recently hailed South Africa’s reclaiming of its position as the largest economy in Africa, a spot held by Nigeria in 2022 and briefly by Egypt in 2023.
Ramaphosa addressed the media during an ANC campaign event held in Kwa-Ngcolosi, outside Durban over the weekend.
“We have now become the largest economy on the African continent, with Nigeria and Egypt having been up there and having their challenges and now South Africa being the largest economy in the continent.
“That position in itself attracts more investors, because they see that this is a country that is reforming various processes and it’s a country going somewhere. We have a clear destiny of where we are going as a country and that’s why we are attracting investors,” SABC quoted Ramaphosa as saying.
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Compiled by Betha Madhomu
