South Africa is benefiting from a confluence of supportive tailwinds that have emerged over the last two years. These include soaring precious metal prices, a shift in the SARB’s inflation target, strong equity markets (which are driving wealth growth), two-pot pension withdrawals, and GEFECRA. These external factors are difficult to anticipate, but their impact is nonetheless real and growth supportive.

Unfortunately, while the GNU has made some progress and secured some victories, there have been few signs of the kind of broader policy and ideological shifts that must occur domestically to ensure these tailwinds give momentum to sustainable economic progress.