Omanghana
South Africa recorded a current account surplus of R50.2 billion (about $3.03 billion) in the fourth quarter of 2025, according to new data released on March 12, 2026 by the South African Reserve Bank. The result marks a notable turnaround for the country’s external finances after an extended period of deficits.
The latest figures represent South Africa’s first quarterly current account surplus since the third quarter of 2023 and the largest surplus recorded since early 2022. The improvement effectively ends a nearly two-year stretch during which the country consistently recorded deficits in its current account balance.
During the fourth quarter, the current account balance shifted to a surplus equivalent to 0.6 percent of gross domestic product, reversing the deficit of 0.9 percent of GDP—approximately R72 billion—that had been recorded in the third quarter of 2025.
A major factor behind the turnaround was the sharp increase in the country’s trade surplus. South Africa’s trade balance widened significantly to R282.2 billion during the quarter, up from R169 billion in the previous three months. Strong export performance, combined with relatively lower import costs, contributed to the improvement.
Despite the positive quarterly performance, the country still recorded a small current account deficit for the full year. For 2025 as a whole, the deficit narrowed to R35.2 billion, or about 0.5 percent of GDP, compared with R48 billion in 2024.
The stronger external position was largely driven by favorable global commodity prices. Higher international prices for key precious metals, particularly gold and platinum, significantly boosted South Africa’s export earnings, given the country’s major role as a global producer of both minerals.
Lower import costs also contributed to the improved balance. Declining crude oil prices during the period reduced the cost of energy imports, while a modest appreciation of the South African rand helped ease the overall cost of imported goods.
Another contributing factor was improved income from foreign investments. Increased dividend payments from overseas holdings, particularly in the mining sector, helped narrow the deficit on the country’s primary income account.
Overall, South Africa benefited from an improvement in its terms of trade during the quarter. Export prices increased while import prices declined, strengthening the country’s external balance and helping produce the first current account surplus in more than two years.
Source: Omanghana
