Prominent investment bank backs South African assets

South African bonds and stocks are set to extend this year’s rally, boosted by slowing inflation and strong mining stocks, according to Goldman Sachs strategists. 

The team including Kamakshya Trivedi expects the nation’s long-term bonds to be well supported as the market adjusts to a slower pace of price growth.

The yield on South Africa’s 10-year note has fallen to around 9% from more than 11% in April.

South African assets performed strongly this year as slowing inflation allowed the country’s central bank to cut its benchmark rate to the lowest since January 2023.

Surging gold prices have also boosted mining shares, with Anglogold Ashanti and Gold Fields up more than 200% this year.

Goldman Sachs upgraded South African equities to overweight in August, implying a further increase of 2% for the FTSE/JSE Top40 Index over the next year.

The gauge is up 52% in dollar terms so far in 2025, which compares with a 28% advance of the MSCI Emerging Markets benchmark.