Joy Immelman (Main Author)

Finance Minister Enoch Godongwana did not announce any major tax increases.

Taxation:

• No major changes occurred, VAT and income taxes were not hiked.
• No increase in the fuel levy and Road Accident Fund Levy.
• There was the normal rise in taxes for certain types of alcohol and tobacco products.

The two-pot system for retirement funds to launch in September 2024 (click here to see article)

Government reduced it real GDP growth forecast for 2023 to 0.65%.

2024 growth estimates increased to 1.3% from 1%.

Source: PSG Asset Management

Source: PSG Asset Management

  See updated post, Two-Pot System That Became the Three-Component System.

The Rand has been trading at its most sustained period trading below 18 USD/ZAR since April 2023.

• A pick-up in global risk appetite has seen the Rand recover against most major currencies and outperforming its emerging market peers. 
• The main reason behind the change in sentiment has been signs of global inflation cooling down, increasing hopes that the end of the Central Bank tightening cycle really is now in sight.

Source: Currency Partners

Despite high volatility, stubborn inflation, interest rate hikes and the war in Ukraine, the ALSI and MSCI (USD) grew by 5.9% and 13.9% respectively in the first half of 2023 (see graph below).  This highlights the potential for growth in uncertain times, and the importance of staying invested in order to benefit from it.

Source: Bloomberg, Ninety One SA