For Creamer Media in Johannesburg, I’m Halima Frost.

Making headlines: South Africa posts largest current-account surplus since 2022; Reserve Bank sees financial system staying resilient despite Iran war; And, US announces additional $20m for Ebola response

South Africa posts largest current-account surplus since 2022

South Africa posted its largest current-account surplus in four years in the first quarter as the value of gold exports surged and imports dropped.

The balance on the current account — the broadest measure of trade in goods and services — widened to a surplus of 2.4% of gross domestic product, or R190.7-billion, from 0.6% in the previous quarter, the South African Reserve Bank said. That beat the median estimate of nine economists surveyed by Bloomberg, who forecast a positive balance of 1.1% of GDP.

The quarterly surplus was the second in a row and the biggest since the third quarter of 2021, the central bank data showed. As a percentage of GDP, it was the highest since the first quarter of 2022.

The better-than-expected outcome may boost the rand, which is little changed against the dollar since December after a rally at the start of the year was erased by the US-Israeli war in Iran that erupted on February 28.

South Africa’s trade surplus jumped to R437.9-billion in the first quarter from R282.2-billion “as the value of merchandise and net gold exports increased while that of merchandise imports decreased,” the Reserve Bank said.

Reserve Bank sees financial system staying resilient despite Iran war

South Africa's central bank said the country's financial system was likely to remain resilient despite tighter financial conditions and monetary policy stemming from the Iran war.

Africa's biggest economy started to pick up pace last year and investor sentiment brightened on signs of fiscal discipline, but the Iran war has dampened the near-term outlook as it has rippled through oil markets, capital flows and household finances.

The oil price shock is expected to continue to exert inflationary pressure, potentially prompting tighter monetary policy than before the conflict," the South African Reserve Bank said in its Financial Stability Review, a biannual checkup on the health of the financial system.

The Reserve Bank’s quarterly projection model now suggests another interest rate increase in 2026 after a 25-basis-point hike at its policy meeting on May 28.

Relief for interest rate-sensitive households is unlikely to materialise as expected at the beginning of the year," it said in the report.

And, US announces additional $20m for Ebola response

The US State Department said it would provide an additional $20-million to help fight the Ebola outbreak in Africa, bringing its total direct support to more than $220-million.

The money will support preparedness efforts in Burundi, Kenya, Rwanda, and South Sudan, including for national emergency operations centers, as well as surveillance, testing, border screening and infection prevention and control, the department said in a statement.

It will also help countries distribute critical commodities and manage Ebola patients, it said.

That’s a roundup of news making headlines today

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