🇿🇦 South Africa's Economic Pulse: Week of 14-18 April 2025

By Loy de Jager | Principal, Upside Properties

A week of shifting economic winds - with early signs of a bounce in retail confidence, a breakthrough in energy procurement, and a unique development in how South African assets are being viewed by foreign investors.

📊 Domestic Highlights

Retailers Report a Surprise Uptick in Consumer Confidence
Retail data from March surprised the market with a 1.2% month-on-month increase in consumer sales - driven largely by promotions in the durable goods sector. The Retail Trade Confidence Index has moved out of negative territory for the first time in eight months. While cost pressures (like VAT) loom, South African consumers are showing resilience ahead of the winter slowdown.

New Energy Procurement Plan Unlocked
Eskom and the Department of Mineral Resources and Energy jointly confirmed approval of 4,200MW in new IPP (Independent Power Producer) contracts across wind and solar projects. This marks the single largest round of green energy procurement since REIPPPP Round 4. It's a strong signal that energy security - and by extension, investor confidence - may finally be turning a corner.

🌍 Global Factors

SA Named Top Frontier Market for Real Assets
In a new analysis by a major global asset manager, South Africa has been ranked as one of the top three frontier markets for real assets - including commercial property - due to attractive valuations, improving fiscal transparency, and a stable repo rate. This is the first time SA has ranked in the top five in more than a decade.

Zimbabwe Reintroduces Local Currency - Regional Ripple Effects?
Zimbabwe launched its new "ZiG" currency this week, backed by gold and other reserves. While early market reaction is cautious, analysts are watching closely for any regional currency volatility spillover - especially given the number of Zimbabwean nationals participating in the informal SA economy.

🏠 Property Market Implications

The boost in consumer confidence, energy investment, and renewed international interest in South African real assets bodes well for investor appetite - particularly in the logistics, renewable infrastructure, and mixed-use residential segments. Developers are eyeing energy-secure nodes like parts of the Northern Cape and Eastern Cape as potential investment sweet spots.

🌟 The Upside of the Week

First-Ever African-Built Satellite Launches Successfully
A satellite fully designed and assembled in Africa - built by engineers from South Africa, Kenya, and Nigeria - was successfully launched into orbit this week from Cape Canaveral. Its mission? Climate monitoring for the African continent. A remarkable symbol of the continent's growing tech and scientific capabilities.