South African Reserve Bank reports South Africa’s net international investment position increased to R2 117 billion at end-December 2024

The South African Reserve Bank published updated international investment position (IIP) data showing South Africa’s net IIP strengthened to a positive R2 117 billion at end-December 2024 from a revised R1 960 billion at end-September 2024, as foreign assets increased more than foreign liabilities. A 3.5% decline in the nominal effective exchange rate in the fourth quarter of 2024 had a larger valuation impact on foreign assets than on foreign liabilities. Foreign assets rose 2.5% to R9 284 billion, supported by higher portfolio investment as the private non-banking and banking sectors acquired foreign equity and debt securities, and by an increase in reserve assets linked to proceeds from the national government’s two international bond issues totalling USD 3.5 billion. Foreign liabilities increased 0.9% to R7 167 billion as portfolio and other investment liabilities rose, partly offset by a decline in direct investment liabilities and financial derivatives, with the national government’s fifth of eight quarterly repayments of XDR 381 million on an International Monetary Fund loan also partly countering the rise in other investment liabilities. As a share of annual GDP, foreign assets increased from 124.9% to 126.5% while foreign liabilities edged down from 97.9% to 97.7%, lifting the net IIP from 27.0% to 28.9% of GDP. The South African Reserve Bank indicated that the IIP as at end-March 2025 will be released at the end of June 2025.