Over the past year, South Africa’s economy showed some green shoots. Growth steadied, confidence improved and macroeconomic policies aligned to support reforms, including the adoption of a new 3% inflation target.
At the same time, the global environment became more challenging, with uncertainty dominating policy discussions.
The result is a mixed picture.
The good news includes lower borrowing costs and tighter risk spreads compared with last year, along with a credit rating upgrade, a stronger currency and South Africa’s exit from the Financial Action Task Force’s (FATF) greylist. The bad news is largely driven by sharply higher fuel prices following the Middle East crisis, with knock-on effects on transport costs and food prices.
Our job is to navigate these difficult conditions so that the good news endures and the bad news proves temporary.
The Constitution of the Republic of South Africa, 1996, adopted 30 years ago, enshrined the independence of the South African Reserve Bank and provided it with a clear mandate to achieve and maintain price stability in the interest of 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.
The SARB serves the broader economic interests of all South Africans and its operations are not profit-driven. In addition to its primary mandate, the SARB’s powers and functions – typically performed by central banks – are defined by Acts of Parliament.
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 paid to the South African government.
Learn more about the SARB's work
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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
Inflation3.2%2025 calendar year |
Profit after taxR6.5 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 taxR11 billion(2024/25: 127 billion profit) |
SARB profit before taxR9 billion(2024/25: 124 billion profit) |
Dividends (Shareholder dividend of)R0.2 millionin line with the SARB Act (2024/25: R0.2 million)
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Group annual financial statements
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The 2025/26 financial year marked a strong start to the SARB Strategy 2030. The organisation delivered optimal performance across its strategic focus areas (SFAs) and enablement focus areas (EFAs), laying a firm foundation for the period ahead.
Building on the credibility established in the previous strategy cycle, the SARB has demonstrated its ability to deliver tangible outcomes – anchoring inflation, safeguarding financial stability, modernising payments and advancing public trust, leveraging data and technology and promoting workforce transformation.
These achievements signal not only continuity but also a clear trajectory towards achieving 2030’s objectives, where transformation, inclusivity and resilience will define the SARB’s role in South Africa’s economic future. This year’s outcomes affirm that the SARB is advancing with purpose, connecting strong delivery in the present, to meet future challenges and opportunities.
As at 31 March 2026, the SARB had 855 shareholders.
These shareholders have no rights or involvement in setting monetary policy, financial stability policy, or the regulation and supervision of the financial sector.
Shareholder rights at the SARB’s AGM are limited to:
- reviewing the SARB’s annual financial statements;
- electing seven non-executive directors of the Board when vacancies arise; and
- appointing the external auditors and approving their remuneration.
SARB shares are traded over the counter, with the process managed by the organisation. Although some foreigners still hold shares, only the shareholders living in South Africa may vote at the AGM.
Shareholders receive one vote for every 200 shares held. The SARB Act limits any shareholder, including associates as defined in the Act, to a maximum holding of 10 000 shares.
In 2025, the SARB held its AGM in the newly renovated Head Office Campus building, providing a modern environment for shareholders and stakeholders.
Risk management
The SARB must fulfil its mandate in a complex economic and financial environment where risks change rapidly. It places significant importance on risk management due to its critical role in the economy and the functioning of the financial system.
The SARB’s core functions, whether operational or strategic, come with inherent risks, which are elevated by the current geopolitical environment and the fast pace of technological change.
The SARB continuously monitors and responds to potential and actual business, political, economic, technological and regulatory risks from both the global and domestic environments.
Global inflation is experiencing renewed upward pressures. The escalating conflict in the Middle East has driven global energy prices sharply higher and disrupted supply chains.
Brent crude oil and European natural gas prices have surged by more than 70% since hostilities began, and prices for fertiliser and aluminium have increased amid constrained supply. Oil futures have also moved higher, reflecting uncertainty about the adequacy of near-term supply.
The past year has been characterised by further increases in geopolitical tensions, with the war between Iran, Israel and the US having a larger impact on the global economy. Bond yields have risen and equity prices have declined in both advanced and emerging economies as investors shifted into perceived safe assets. Along with higher oil prices, these factors have benefitted the US dollar. South African assets also sold off, but showed marked resilience, only partially reversing the gains from the previous six months.
