Globally, it has been a year of extraordinary change.
The ‘great election year’ of 2024 saw voters in 64 countries, including South Africa, heading to the polls – with some remarkable results. Domestically, our election ushered in a new era of coalition politics, reflecting the maturity of our democracy but also presenting new uncertainties and opportunities.
The global environment has changed significantly with a prolonged period of globalisation and integration that has given way to acute trade tensions.
Conditions remain highly uncertain, making it difficult to guess how the dust will settle.
The South African Reserve Bank, the oldest central bank in Africa, was established on 30 June 1921.
According to the Constitution of the Republic of South Africa, the SARB has a clear mandate to maintain price stability, which is vital for balanced and sustainable economic growth. The Constitution emphasises that the SARB must operate independently and without fear, favour or prejudice while fulfilling its primary objective of ensuring price stability.
In addition to its primary mandate, the SARB’s powers and functions, typically performed by central banks, are defined by acts of Parliament.
The SARB operates not for profit but in the broader interest of all South Africans.
After accounting for certain provisions, payment of company taxes on profits, transfers to reserves and dividend disbursements, the surplus from the SARB’s earnings is remitted to the South African government.
Price and financial stability for sustainable growth
The SARB has a fundamental role, as mandated by the Constitution, to maintain price stability in the interest of balanced and sustainable economic growth. As a constitutional entity, the SARB is accountable to the people of South Africa.
In addition, the SARB is tasked with protecting and enhancing financial stability; regulating and overseeing financial institutions and financial market infrastructures; issuing and destroying banknotes and coin; and acting as the government’s banker. It also serves as the custodian of the national payment system, which is crucial to South Africa’s economy.
Performance highlights
Inflation4.4%2024 calendar year |
Profit after taxR118 billionwas transferred to the contingency reserve |
Currency-producing subsidiaries100%of orders from the cash industry met on time and in full
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Group profit before taxR127 billion(2023/24: 20 billion profit) |
SARB profit before taxR124 billion(2023/24: 18 billion profit) |
Dividends (Shareholder dividend of)R0.2 millionin line with the SARB Act (2023/24: R0.2 million)
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Group annual financial statements
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The 2024/25 financial year signals the end of the SARB’s Strategy 2025 and sets the stage for Strategy 2030. More than two years of Strategy 2025’s cycle were impacted by the COVID-19 pandemic and its effects are still noticeable today. These past five years have been transformative and challenging for the SARB. The conclusion of this strategy cycle offers an opportunity to evaluate our performance, celebrate our successes and pinpoint areas for improvement.
Throughout this period, the SARB’s objectives were guided by its five strategic focus areas and five enablement focus areas. The SARB reviewed and improved the monetary policy implementation framework, reformed interest rate benchmarks and extended the measurement and analysis of the economy. Headline inflation remained within the 3–6% target range.
The financial system remained resilient, with most supervised institutions liquid and well-capitalised or undertaking corrective action. There were no major systemic events requiring resolution. Key achievements include the operationalisation of Corporation for Deposit Insurance, the designation of the SARB as Resolution Authority and significant progress on the Financial Action Task Force action items, with potential delisting from the greylist by October 2025.
As at 31 March 2025, the SARB had 843 shareholders.
These shareholders do not have any rights or involvement in determining monetary policy, financial stability policy or the regulation and supervision of the financial sector.
SARB shares are traded on an over-the-counter share-trading facility managed by the organisation. Although some foreigners still hold shares, only the shareholders residing in South Africa are entitled to vote at the Annual General Meeting.
Shareholders are allowed one vote for every 200 shares held. The SARB Act 90 of 1989 (SARB Act) restricts shareholders to owning no more than 10 000 shares, including shares held by associates, as defined in the SARB Act.
Risk management
The SARB must execute its mandate of price and financial stability in a complex economic and financial environment where risks evolve rapidly. Owing to its critical role in the economy and the functioning of the financial system, the SARB places a strong emphasis on risk mitigation and management.
The SARB’s core functions, whether strategic, operational or policy-driven, come with inherent risks. To manage these risks, the SARB continuously monitors and responds to potential and actual political, economic and regulatory risks stemming from both the global and domestic environments. Additionally, risks associated with strategic initiatives and projects are managed through the SARB’s risk management framework, ensuring they remain within accepted levels of risk tolerance.
Global inflation continued to moderate in 2024, easing to 5.7% from 6.6% in 2023 and 8.6% in 2022. Favourable price developments in food and energy, coupled with restrictive monetary policy, have underpinned this moderation. While the easing trend is expected to continue, it will not be without setbacks.
South Africa’s headline inflation decelerated sharply during the second half of 2024, reaching 2.8% in October and stabilising around 3% thereafter.
