September 10, 2026.

For Creamer Media in Johannesburg, this is Polity’s daily podcast.

Making headlines:

South Africa's current account records Q2 deficit as Iran war drives up import costs

South Africa urged to lock in reforms before Ramaphosa leaves

And, India hosts BRICS summit as Iran war tests bloc unity

South Africa recorded a current account deficit in the second quarter after a strong surplus in the first three months of this year, as the Iran war drove import costs sharply higher, central bank data showed today.

The current account deficit was 2.6% of gross domestic product in the second quarter, compared with a surplus of 2.3% in the first quarter of 2026, the South African Reserve Bank said.

The deficit on the current account was R205.5-billion in April-June, compared with a surplus of R181.6-billion in January-March.

The trade surplus narrowed sharply to R146.4-billion from R428.8-billion in the previous quarter.

South Africa must enshrine its reform process in law to guarantee the momentum gained under President Cyril Ramaphosa endures after he leaves office, said the head of a key business lobby group.

Business Leadership South Africa Chief Executive Officer Busi Mavuso said that the reform project is the most important project that is happening in this country.

She explained that reducing government dominance in the country gives the country the resilience in order to continue functioning, irrespective of what happens in politics.

Investors have warmed to Africa’s largest economy as reforms begin to bear fruit, most visibly with the end of almost daily power cuts as the state-owned electricity utility improves its performance. South Africa’s credit-rating has been upgraded, the much-maligned rand has strengthened, and the stock market hit a record high in February.

But the legacy of corruption and mismanagement under Ramaphosa’s predecessor, Jacob Zuma, still dogs an economy that has expanded at less than 1% annually for more than a decade. And with Zuma still a political force, there’s apprehension whether the pro-growth track of Ramaphosa and his government coalition partners will survive the election cycle.

The next general election isn’t until 2029. But Ramaphosa will stand down as leader of the ANC — the country’s biggest political party — in late 2027, and in the past the incoming head of the ANC has then become president.

India will host the BRICS Leaders' Summit this weekend, seeking to lift the bloc's global profile even as the US-led war on Iran splits its membership, with Tehran and Abu Dhabi on opposing sides of the conflict.

The September 12-13 summit in New Delhi comes more than six months after the US and Israel launched attacks on Iran, a BRICS member since 2024. The conflict has led to a virtual shutdown of the Strait of Hormuz, one of the world's key choke points in the oil trade, pushing crude prices to over $100 a barrel.

BRICS member UAE, after being hit by Iranian missiles since the war began, suspended all trade and financial transactions with Iran in August.

Foreign policy experts said the key test for the bloc will be finding language on the Middle East crisis that both Abu Dhabi and Tehran can accept, clearing the way for a joint declaration.

Such a joint statement was unlikely to influence the current geopolitical landscape, but will demonstrate, for instance, that a forum of emerging countries could be united against economically debilitating policies like Western sanctions, they said.

That’s a roundup of news making headlines today

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