🇿🇦 South Africa's Economic Pulse: Week of 5-9 May 2025

By Loy de Jager | Principal, Upside Properties

📉 Key Local Developments

Ninety One Executes Share Buyback Amid Market Optimism
On 9 May 2025, investment firm Ninety One plc announced the repurchase of 200,000 of its ordinary shares on the London Stock Exchange. This move reflects the company's confidence in its valuation and aims to enhance shareholder value.

African Nations Collaborate to Combat Illicit Financial Flows
During the African Union subcommittee meeting on 5 May 2025, member states, including South Africa, emphasized the importance of joint efforts to tackle illicit financial activities. The collaboration aims to strengthen economic integrity and boost investor confidence across the continent.

🌍 Global Factors

US Federal Reserve Maintains Interest Rates Amid Economic Uncertainty
In its May 2025 policy meeting, the US Federal Reserve decided to maintain its benchmark interest rates at 4.25%-4.5%, choosing a cautious approach in the face of ongoing economic uncertainty. This decision was influenced by recent increases in tariffs and their unpredictable effects on the economy. Additionally, mixed economic indicators contributed to the Fed's decision to hold rates steady, signaling a wait-and-see stance as policymakers seek more clarity on the economic outlook.

🏠 What It Means for the SA Property Market

• Industrial & Logistics Property: The share buyback by Ninety One indicates corporate confidence, potentially leading to increased investments in industrial and logistics properties.

• Residential Property: Collaborative efforts to curb illicit financial flows may enhance economic stability, positively influencing residential property markets.

• Commercial Leasing: Stable interest rates in the US could lead to favorable borrowing conditions, encouraging expansion in commercial leasing activities.

🌟 The Upside of the Week (Unrelated, but Uplifting)

🌍 Global Renewable Energy Milestone Achieved
In a significant environmental achievement, a small European nation successfully powered its entire national grid for 24 hours using only renewable energy sources. This milestone demonstrates the feasibility of sustainable energy solutions on a national scale and offers inspiration for similar initiatives worldwide.