Rand breaks below R16 to the dollar for first time in nearly four years
The rand briefly strengthened below R16 to the dollar on Monday
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The rand briefly strengthened below R16 to the dollar on Monday, supported by a weaker US currency and rising investor confidence in South Africa.
The currency gained 0.8% to trade at R15.9982, its strongest level since June 2022. However, it later edged back above R16, remaining close to the level as markets weighed US dollar movements and domestic economic indicators.
Gold prices have also remained at record highs, helping to strengthen the rand by increasing the value of South Africa’s exports and attracting foreign investment.
Last week, IOL also reported that the World Bank has given South Africa a modest vote of confidence, saying the economy is growing again but warning that the recovery remains weak.
According to the latest World Bank Global Economic Prospects report, South Africa’s economy expanded by an estimated 1.3% in 2025, supported by a more reliable electricity supply, a strong agricultural harvest and improving business confidence.
"In South Africa, growth strengthened in 2025 to 1.3%, supported by more reliable electricity supply, a bumper agricultural harvest, and a pickup in business confidence toward year-end. Fiscal consolidation efforts and a lower inflation target further bolstered investor sentiment," the report noted.
The World Bank predicts that growth will edge up only slightly over the next two years, reaching about 1.5% by 2027.
"Growth in South Africa is projected to increase to 1.4% in 2026 and 1.5% in 2027. Continued reform momentum — particularly in energy and logistics — alongside rising public investment is expected to crowd in private investment and support medium-term growth prospects," the report stated.
mthobisi.nozulela@iol.co.za
IOL Business