South African Reserve Bank reports South Africa’s net international investment position rises to ZAR 2,229 billion at end March 2025

The South African Reserve Bank published an update on South Africa’s international investment position (IIP), showing the country’s positive net IIP increased from a revised ZAR 2,124 billion at end December 2024 to ZAR 2,229 billion at end March 2025 as foreign assets rose more than foreign liabilities. Foreign assets increased 1.8% to ZAR 9,460 billion, with gains driven mainly by valuation effects in direct and portfolio investment assets linked to higher market values of dual-listed entities with foreign headquarters. Other investment assets declined primarily due to loan repayments to the domestic private banking sector from non-residents and the repatriation of deposits from non-resident banks, while reserve assets rose mainly on valuation effects from a higher gold price. Foreign liabilities increased 0.9% to ZAR 7,231 billion, as higher portfolio and other investment liabilities more than offset declines in direct investment liabilities and financial derivatives; the 5.4% rise in the FTSE/JSE All-share Index supported portfolio liabilities despite the redemption of a US$1.25 billion international bond by a public corporation, and other investment liabilities rose on increased short-term lending and deposits from non-residents, partly offset by the government’s sixth of eight quarterly repayments of XDR 381 million on an IMF loan. As a share of annual GDP, the net IIP rose from 28.9% to 30.1% over the quarter. The Bank expects to release South Africa’s IIP as at end June 2025 at end September 2025.