South Africa

Business is challenging at present given a lack of the infrastructure spending required at Eskom and Transnet to stimulate the economy.

Inflation was at 3.1% in March and will struggle to recede owing to the current situation in the Middle East; higher petrol prices over recent months have been affecting the economy and increasing costs. The prime interest rate in South Africa is likely to remain at 10.25% until there is a resolution of the Middle East conflict.

US tariffs of 30% are affecting South African exports. Meanwhile, the US African Growth and Opportunity Act (AGOA) has been officially extended through
December 31 2026.

South Africa’s ban on exports of copper scrap is continuing but dealers are still shipping out ingots, anodes, blocks and billets. Aluminium scrap can still be exported through the International Trade Administration Commission but most dealers are selling locally, except in the case of those few grades which are not consumed domestically.

The ABSA purchasing managers’ index rose to 52.6 in April from 49.0 in March, driven by a rebound in both business activity and new sales orders, and maybe also to proposed increases from April.

In company news, Hulamin Extrusions has been sold in a transaction subject to Competition Commission approval by July 31 this year.

At the time of writing, the rand has strengthened to 16.40 to the US dollar.