South African Reserve Bank publishes 2024 flow-of-funds analysis showing net capital inflow down to ZAR 47.7 billion and government net borrowing at ZAR 377 billion

The South African Reserve Bank published a staff note and statistical tables on South Africa’s national financial account for 2024, setting out inter-sector financial flows and financing balances. The note links subdued domestic conditions to lower aggregate saving and investment and highlights a smaller foreign-sector surplus, a narrowing in general government borrowing, and strong deposit growth within financial intermediaries. Real economic growth slowed to 0.5% in 2024 from 0.8% in 2023, while gross saving across domestic sectors fell to ZAR 986 billion from ZAR 1,007 billion and gross capital formation declined to ZAR 1,034 billion from ZAR 1,083 billion. The foreign sector’s net lending position decreased to ZAR 47.7 billion (0.6% of GDP) from ZAR 76.2 billion (1.1% of GDP), alongside non-residents shifting to net purchases of domestic fixed-interest securities of ZAR 78.5 billion and extending loans of ZAR 53.4 billion. General government’s net borrowing requirement narrowed to ZAR 377 billion from ZAR 428 billion and was financed mainly through net issuance of government bonds of ZAR 315 billion (including ZAR 51.4 billion raised in international bond markets) and Treasury bills of ZAR 22.0 billion; a revised Gold and Foreign Exchange Contingency Reserve Account (GFECRA) settlement agreement provided for a ZAR 100 billion disbursement in July 2024. Financial intermediaries’ net acquisition of financial assets increased to ZAR 996 billion from ZAR 367 billion, with the South African Reserve Bank Act amended to give effect to GFECRA transfers to National Treasury and deposits rising sharply. The analysis is based on the annual 2024 flow-of-funds statistics in the Quarterly Bulletin and the appended quarterly national financial account statistical tables for 2024.