🇿🇦 South Africa's Economic Pulse: Week of 7-11 April 2025

By Loy de Jager | Principal, Upside Properties

South Africa's economic mood this week is best described as cautiously optimistic, with a mix of forward momentum and significant external headwinds.

📊 Domestic Highlights

Tax Revenue Growth
SARS announced a 6.1% increase in net revenue collections for the 2024/25 fiscal year, reaching R1.855 trillion. The construction, financial, and property sectors were among the best performers, signalling that there's still appetite and capital movement in key areas of the economy.

Economic Activity Uptick
The BankservAfrica Economic Transactions Index (BETI) hit an eight-month high, confirming a notable increase in national economic transactions. Analysts attribute the uptick to improved power stability and increased public sector spending as departments wrap up financial year allocations.

VAT Rate Increase Announced
In a bid to close a significant budget shortfall, National Treasury has announced a phased VAT increase - from 15% to 15.5% as of 1 May 2025, and to 16% from April 2026. This decision is already proving politically controversial and is likely to affect consumer spending, particularly in lower-income brackets.

Implications for the Property Market
While growth in revenue and activity points to positive conditions for property investment, the VAT hike could have a cooling effect - increasing development and operational costs, and potentially softening demand in middle-market segments. Investors and developers should factor these variables into their forecasts for the next 12-24 months.

🌍 Global Factors

U.S. Tariffs on South African Exports
The U.S. has implemented a 31% tariff (Although pasued - for the time being) on a range of South African exports. The citrus and automotive industries are particularly exposed - with jobs, production lines, and export volumes under immediate threat.

For the property market, these developments could have a regionalised impact - especially in farming and manufacturing towns reliant on U.S.-bound trade. Slower export activity may reduce local growth, rental demand, and business confidence in those nodes.

🌟 The Upside of the Week

Hope with a Shell: 200 Endangered Tortoises Released in Madagascar
In a delightful piece of unrelated but heartwarming news - 200 critically endangered baby tortoises, rescued from illegal trafficking, were released back into the wild in Madagascar. It's a small but mighty reminder that not all is bleak - progress is still being made, one shell at a time.