Taking stock of your wealth in 2025
A fresh look at South Africa’s investment landscape.
If you’ve been following South Africa’s economic story lately, you might have noticed positive developments worth paying attention to. As 2025 enters its final quarter, the domestic economy is showing encouraging signs of recovery. For investors, this creates a moment to pause, reassess, and consider how these shifts may shape their portfolio strategy and long-term wealth planning.
Growth is picking up
For the first time in a while, we’re seeing real economic momentum. The second quarter brought us 0.8% growth – a welcome jump from Q1’s tiny 0.1%. What is encouraging is that this growth is spread across mining, agriculture, and manufacturing, rather than being driven by just one sector.
Mines are making the most of strong commodity prices, farmers are shipping more produce overseas (particularly to the US, before those new tariffs kick in), and our factories are finally getting the reliable power they need to keep the lines running.
The Reserve Bank forecasts 1% growth for 2025, with momentum building into the second half.
South Africa’s main trading partners had varying levels of GDP growth during the first half of 2025. China grew by 5.3%, the US increased by 1.6%, the UK rose by 1%, while Germany was flat. Faster growth by trading partners presents opportunities for expansion and broadening exposure of investment portfolios to other markets.
The stock market’s stellar run
Clients with JSE exposure have benefitted from robust gains this year. The All Share Index has shot up 21% since January, breaking through 100,000 points in July and still climbing. Mining companies have been standout performers, supported by record gold prices above $3,000 an ounce. Amid ongoing geopolitical uncertainty in Ukraine and the Middle East, gold’s traditional status as a safe-haven asset is once again proving highly valuable. This run is a useful reminder of the importance of balance: while it’s exciting to see such strong results, diversification remains key to managing risk.
Progress on rail reform
Here is something we’ve all been waiting for: 11 private companies are getting the green light to run trains on Transnet’s tracks. While we won’t see the full benefits until 2027, this could be a game-changer. These operators could boost freight capacity by 60% in their first five years – much needed when we’re currently moving 160 million tons but have demand for 250 million. Better logistical support is expected to benefit mining, agriculture, and manufacturing. For investors, this reform represents a longer-term structural opportunity: efficient logistics underpin competitiveness, growth, and sustainable returns across key sectors.
Signs of improving consumer confidence
Want to know how everyday South Africans are feeling? Look at car sales. July saw over 51,300 vehicles sold – numbers we haven’t seen since late 2019. This points to improving consumer confidence, which is positive for the broader economy. Lower interest rates are making car loans more affordable, and fuel prices have dropped back to January levels, giving consumers some breathing room.
Interest rates are working in our favour
The financial environment is looking friendlier by the day. Interest rates have come down by 75 basis points this year, and we may see another small cut in the coming months. The rand’s 6% gain against the dollar has also helped keep imported goods affordable and inflation under control. Together, these factors provide a healthier foundation for both investment and consumption.
What this means for your money
The convergence of improving fundamentals, supportive monetary policy, and progress on reform signals a more constructive environment for wealth creation than we have seen in recent years.
In the short term, resource sectors continue to offer opportunities, while infrastructure and logistics are shaping up as longer-term themes. Global exposure also remains an important way to spread risk and access growth.
To ensure your portfolio is well-positioned, we encourage you to connect with your private banker or wealth planner. This is a good time to take stock and align your investments with the opportunities ahead.