As of September 25, 2024, the South African Rand (ZAR) has risen by 11% against the US dollar since February, following gains in key sectors like electricity and transport.
The recent appreciation to 17.25 ZAR/USD has been driven by improvements in power supply and infrastructure, as well as a 28% surge in gold prices year-to-date. The Rand’s recovery comes after the US Federal Reserve’s rate cut on September 18, weakening the dollar.
In Q2 2024, South Africa’s GDP grew by 0.4% quarter-on-quarter, supported by a more stable power grid and economic performance.
President Cyril Ramaphosa outlined a vision for further growth, including large-scale infrastructure development and a push for renewable energy projects totaling 22,500 MW.
This marks a notable recovery from 19.20 ZAR/USD in February 2024 and reflects a reversal of the currency’s earlier losses due to economic challenges in 2022-2023, such as power shortages and commodity price declines.