South Africa Roundup: Inflation target, Trump’s claims of Afrikaner persecution, G20 Summit

Inflation target

South Africa has announced a historic change to its monetary policy framework, lowering the official inflation target from the long-standing 3 – 6 % range to a fixed 3 % target, with a ±1 % band. The move marks the first adjustment in 25 years and is intended to strengthen price stability, enhance investor confidence, and pave the way for lower long-term interest rates. Analysts have described it as one of the most significant economic policy shifts since the 1990s. The rand firmed following the announcement, reflecting positive market sentiment, although economists caution that fiscal discipline and structural reforms remain essential to sustaining the gains.

Trump’s claims of Afrikaner persecution

Finance Minister Enoch Godongwana has dismissed U.S. President Donald Trump’s allegations that white Afrikaners are victims of a “genocide” in South Africa, calling the claims “false and inflammatory.” Trump’s remarks, which also led to the U.S. boycott of the upcoming G20 Summit in Johannesburg, have been widely condemned by South African officials. Godongwana stated that the government’s land reform policies are lawful, transparent, and aimed at addressing historical inequalities — not targeting any racial group. He also accused Trump of “recklessly exploiting misinformation” for political purposes, warning that such rhetoric risks damaging diplomatic relations between Pretoria and Washington.

G20 Summit

South Africa’s Cabinet has confirmed that preparations are complete for hosting the G20 Leaders’ Summit in Johannesburg from November 22–23, the first time the event will be held on African soil. Despite the U.S. decision to skip the summit, the government insists it will proceed smoothly, highlighting the significance of Africa’s growing voice in global economic affairs. During the same Cabinet meeting, President Cyril Ramaphosa noted that the country added over 248,000 jobs in the third quarter of 2025, a sign of gradual recovery in key sectors such as manufacturing and construction. Ministers also reiterated South Africa’s commitment to inclusive growth, energy security, and fiscal reform ahead of the 2026 G20 presidency transition to the United States.

Vehicle sales surge in October

South Africa’s automotive industry recorded a 16 % year-on-year increase in vehicle sales in October 2025, signaling renewed consumer confidence and modest improvement in economic conditions. Data from the National Association of Automobile Manufacturers of South Africa (NAAMSA) revealed that both passenger and light commercial vehicle segments experienced growth, supported by improved credit conditions and inventory stability. Industry analysts, however, remain cautious, noting that persistent power supply challenges, low disposable incomes, and policy uncertainty continue to weigh on sustained momentum. The government has welcomed the figures as an indicator that its industrial support programs and trade incentives are beginning to yield results.

Economy could be in decline

A growing number of analysts believe South Africa’s economy may be on the cusp of a gradual turnaround after a decade marked by corruption scandals, energy shortages, and stagnant growth. Recent reforms in the energy, logistics, and financial sectors have improved investor confidence, while fiscal tightening has started to reduce budget deficits. Experts say the combination of a stronger monetary framework, improved governance oversight, and better infrastructure spending could help restore the country’s long-term growth trajectory. Still, they warn that entrenched corruption, unemployment, and sluggish productivity remain serious threats to sustained recovery. The coming year will be critical in determining whether South Africa’s reform agenda can deliver tangible results.