EFBC NEWSLETTERS
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Inflation falls but the story is far
from over
For the first time in years, South Africa’s (SA’s) inflation is closer to Switzerland’s than Zimbabwe’s. August’s Consumer Price Index slowed to 3.3% year-on-year, comfortably inside the South African Reserve Bank’s (SARB’s) 3% to 6% target and edging towards the lower end. Core inflation remains steady at 3.1%. These figures are far from the double-digit surges of the past, suggesting that monetary policy is finally gaining traction. So, why did the SARB hold the repo rate
unchanged at 7.00% in September instead of cutting it again? Policymakers argue that past easing still needs time to filter through. With the rand volatile and SA’s risk premium high, they prefer to wait for inflation to prove that it can stay low.
Scoring own-goals: The incredible cost of being inconsiderate
Economists often talk about “externalities” (the unintended costs or benefits of one person’s choices that spill over onto others). We usually think of carbon emissions or pollution. But South Africa (SA) has a more immediate example: The everyday cost of being inconsiderate. From the traffic light to the boardroom, inconsideration chips away at productivity, erodes trust, and imposes real economic losses.
Eskom, the South African economy’s inflection point
For the first time in more than a decade, South Africans may be entering summer without the fear of load shedding hanging over every family dinner, boardroom meeting, or production line. Earlier this month, Eskom said that it expects no load shedding between September 2025 and March 2026, contingent on keeping unplanned breakdowns under control. Last summer, we saw just 13 days of cuts vs. 176 days the year before: A remarkable turnaround for a utility long synonymous with crisis.
Stabilisation at the bottom
For more than a decade, South Africans have endured declining economic growth, persistent load shedding, and weak governance. Growth in real gross domestic product (GDP) has averaged less than 1% since 2014. It is tempting to think that this decline could continue indefinitely but we have already absorbed the worst shocks. Barring a severe political or service-delivery shock, the probability of a sustained collapse to zero or negative growth is very low.
Chips, central banks, and capital
Markets are being pulled in multiple directions: Technology supply chains are under strain, central banks are caught between inflation and growth, and new financial hubs are emerging. Each shift illustrates how politics and policy increasingly shape market outcomes.
The global economy’s strange crossroads
The global economy resembles a chessboard, with each region playing its own strategy. Three stories now connect in telling ways: China is battling deflation with a new slogan, India is profiting from discounted Russian crude, and emerging markets are racing back to international bond markets on a wave of investor optimism.
Geopolitics, tech, and central banks
The past week, global markets faced a potent mix of geopolitical uncertainty,unconventional trade policies, and shifting central bank signals.
The global trade reset: The new normal?
The global trade environment is undergoing its most dramatic transformation in decades. The United States (US), once the champion of free trade, is now
orchestrating a tariff-driven realignment of global commerce. At the centre is President Donald Trump, whose aggressive trade agenda is shaking markets,
bruising allies, and redrawing the rules of economic engagement.
Profit surprises, political deals, and shifting global growth
Last week’s headlines highlighted the contrast between technological optimism and geopolitical turbulence. As Alphabet posted a 20% surge in quarterly profits, Tesla saw its profits slide by 23% amid weakening sales and intensifying global competition. The diverging fates of these giants reflect a broader trend: Growth is increasingly tied to digital infrastructure and data, while traditional manufacturing faces mounting pressure from tariffs, input costs, and political realignments.
The great reversal: US isolation, innovation, and the new global order
As the world races towards the next financial frontier, the United States (US) appears to be accelerating and braking at the same time. This past week, the US Congress tabled a package of cryptocurrency legislation that clarifies long-awaited regulatory grey areas: Splitting oversight responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission, and setting out clearer rules for stablecoins.
Climate diplomacy, Trump’s tariffs, and a shifting global narrative
Global markets are, once again, facing a swirl of uncertainties as political, environmental, and economic forces collide. From Europe’s tense climate diplomacy with China, to President Donald Trump’s tariff threats and the absence of a unifying global economic narrative, investors are left to navigate a fog of competing signals.
Trump, rates, climate, and debt
The past month reminded us that global markets are rarely calm for long. President Donald Trump’s repeated attacks on the Federal Reserve (Fed) have reignited debate over interest rates, as new fears swirl about climate-driven financial risk and the sustainability of the United States’ (US’) soaring debt.
Markets navigate war, tariffs, and currency crossroads
Markets have held steady despite a series of potentially destabilising global developments, from escalating conflict in the Middle East to renewed tariff shocks in the United States (US) and increasing currency pressures in China. The resilience is notable but it may also reflect a market still trying to interpret how short-term events will influence longer-term fundamentals.
Global markets navigate conflict, oil, and central bank limbo
The global economy is, once again, walking a tightrope. Over the past month, a volatile mix of geopolitical conflict, oil price shocks, and unclear central bank signals has tested the nerves of investors and policymakers alike. While markets have remained broadly stable, the risk landscape has shifted in subtle but significant ways.
The Trump/Musk breakup: A strategic misdirect?
In June 2025, global headlines announced a dramatic falling out between United States (US) President Donald Trump and tech billionaire Elon Musk. Once close allies, the two have publicly exchanged insults, with Trump threatening to cut Musk’s government contracts and Musk criticising Trump’s spending policies. For South African investors, this rift might raise concerns about economic stability and global markets.
Navigating a world of strategic uncertainty
In a month marked by trade tensions, political volatility, and local economic policy shifts, global markets and domestic investors have been forced to navigate a maze of uncertainty. For South Africans, the recent interest rate cut by the South African Reserve Bank (SARB) has offered a glimmer of relief, while the broader global economic environment remains unsettled by geopolitical manoeuvring and shifting supply chain strategies.
What AI, rare earths, and dollar wobbles mean for global markets
At Google’s recent I/O Conference, co-founder Sergey Brin declared that artificial intelligence (AI) will be “vastly more transformative” than the internet or the mobile phone. Meanwhile, global markets grappled with a very different kind of transformation: The visible unravelling of United States (US) fiscal dominance and the dollar’s once-unassailable safe-haven status. In a world shaped by technological breakthroughs and shifting geopolitical alliances, investors must now prepare for a multi-polar, multi-risk economic landscape.
Rare earth controls, Hong Kong market surge, and US policy turbulence
China’s newly enforced export controls on rare earth elements have begun to disrupt global supply chains significantly. Since introducing the controls in April, exporters must now obtain licences from China’s Ministry of Commerce before shipping seven targeted rare earths or permanent magnets used in sectors ranging from electric vehicles and robotics to renewable energy and military aviation.
US-China trade talks offer hope
After months of heightened tariff pressure, the United States (US) and China appear to be moving towards de-escalation. Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer concluded talks with Chinese Vice-Premier He Lifeng in Geneva, calling the discussions “productive” and a sign of “substantial progress”. The talks resulted in an agreement to establish a bilateral mechanism for continued dialogue. Both delegations emphasised shared interests. US businesses, including major retailers, had warned of looming shortages if tensions continued. President Donald Trump called the talks a “friendly but constructive reset”.
Buffett’s legacy, US labour resilience, and China’s economic uncertainty
Esteemed investor Warren Buffett has announced his retirement as Chief Executive Officer of Berkshire Hathaway, effective at the end of the year. Widely respected as the “Oracle of Omaha”, Buffett leaves behind a legacy marked by prudent investment principles, long-term vision, and strategic market insights. Under his leadership, Berkshire Hathaway grew from a failing textile company into a global conglomerate with holdings in insurance, energy, railways, and consumer goods. His annual letters and conservative strategy have provided clarity and conviction to countless investors.
Rethinking commuting: The economic and strategic case for flexible work in SA
As traffic congestion once again grips South Africa’s (SA’s) metros, it is worth re-evaluating the assumptions underpinning our approach to knowledge work. For businesses that rely on employees in finance, technology, legal services, administration, or other knowledge-based functions, the daily commute increasingly appears to be an inefficient and costly legacy of a pre-digital economy. The question is not whether employees can return to the office but whether requiring them to do so is truly in the best interest of business performance and the broader economy.
The end of an era? Navigating the great global reset
The world is on the cusp of a historic transformation. Rising debt, geopolitical rivalry, and domestic unrest across leading economies signal not just another cycle but a profound shift in the global order. Scholars from Paul Kennedy to Ray Dalio, Fareed Zakaria, and Graham Allison have long argued that global systems follow predictable arcs. Today’s signs echo the end stages of past world orders, where dominant powers overreach, challengers rise, and institutions fail to adapt.
Economic developments during March 2025
As we conclude March 2025, it is imperative to reflect on the significant economic events that have shaped both the global landscape and South Africa’s (SA’s) economic
environment. March was marked by escalating trade tensions, fluctuating commodity prices, and pivotal policy shifts, all of which bear profound implications for consumers and markets alike.
Why racism is economically foolish: A South African perspective
Racism, in any form, is more than just a moral failing, it is economically foolish. Around the world, and especially in South Africa (SA), history has shown that discrimination weakens nations. It undermines trust, cooperation, and innovation. It fractures societies into competing factions rather than building unified, productive communities. And, perhaps most importantly, it has never produced sustained prosperity.
SA’s rising inequality and how to fix it
South Africa (SA) remains one of the most unequal countries in the world, with its Gini coefficient (a measure of income inequality) worsening since 1994. Despite efforts to redistribute wealth and improve economic inclusion, inequality has deepened, owing to persistent unemployment, policy failures, and slow economic growth. However, targeted reforms in labour markets, governance, education, and entrepreneurship could help reverse this trend.
SA’s economic crossroads: Crisis or recovery?
South Africa’s (SA’s) economy is at a critical juncture. While many signs point to ongoing structural decline, recent policy shifts and economic activity indicate a possible slow recovery. The key question remains: Will SA continue its downward spiral, or can it stabilise and grow? A deeper look at key economic factors suggests that, while the country is highly unlikely to collapse entirely, obstacles remain that could prevent it from realising its full
potential.
Culture’s role in shaping capitalism
Economic development is often examined through the lenses of policy, technology, and finance, but the influence of cultural norms and values cannot be overlooked. Cultural attitudes shape how markets operate, businesses function, and individuals engage in economic activity. From the Confucian traditions in China to the
entrepreneurial spirit of the United States (US), these cultural traits influence capitalism in profound ways.
Key themes influencing our current economic climate
Understanding economic trends requires the analysis of market forces, policy changes, and global developments. These factors shape business decisions, investor confidence, and financial stability. This week, we explore key themes influencing our current economic climate.
Musk’s political rise: A catalyst for economic growth
Recent articles in major outlets have debated the implications of Elon Musk stepping in as President Donald Trump’s second-in-command. Some worry that this development signals a backdoor coup, a private-sector takeover of democracy, or a power play designed to boost Musk’s fortune. Yet, a close examination of Musk’s track record paints a different picture. Below, we will explore the most common criticisms surrounding the Musk/Trump partnership, and illustrate why it could usher in a more innovative and robust economy, both at home and abroad.
Missing the moment in a changing global economy
Worldwide, economic powerhouses and emerging markets are reinventing themselves by adapting to new trade patterns, fostering tech innovation, and leveraging financial liberalisation. South Africa (SA), in contrast, often appears caught up in an older paradigm, struggling to enact policies that spur job creation or attract robust foreign investment.
Global economic outlook: Steady growth with persistent challenges
The World Bank projects that the global economy will maintain a steady growth rate of 2.7% in 2025 and 2026, consistent with the previous two years. While this stability is noteworthy, the growth rate remains insufficient to significantly alleviate global poverty, particularly in developing economies where sluggish investment, high debt levels, and the escalating costs associated with climate change present formidable obstacles.
2025: A year of shifting trends and policy disruptions
Recent weeks have seen significant developments in the global economy and financial markets. These developments are intensified by possible significant geopolitical and policy shifts, including Donald Trump’s second term as the President of the United States (US). With a history of protectionist policies, this scenario could significantly influence global trade patterns and market dynamics.
Lessons from 2024: A tale of two economies
As 2024 draws to a close, the global economy has delivered its fair share of surprises, challenges, and lessons. Among them, the unprecedented yield inversion between China and Japan’s 30-year government bonds stands out as a defining moment.
Exploring Wills In South Africa
Will outlines the distribution of your assets and estate upon your passing. Creating a Will not only ensures that your wishes are carried out but also offers peace of mind to both you and your loved ones. In this article, we explore Wills and the crucial elements that you need to include in your Will. We discuss the legal requirements, steps to drafting your Will, taxes and fees applicable to deceased estates, and the importance of seeking professional advice. We conclude the article by asking: What happens if you die without a valid Will?
Mortality Rates In South Africa
With National Suicide Prevention Month starting on 1 September 2023, we delved into the current statistics available to us surrounding unnatural causes of death, of which suicide is a part.
It is important to note that the author of this article understands that labelling suicide and road accidents as ‘self-inflicted’ could be seen as insensitive given that the circumstances surrounding the cause of a suicide or a road accident are unknown The context in which the terms are used is solely from the perspective of mortality statistics.
Two-pot Retirement System For Public Comment
The revised 2023 Draft Revenue Laws Amendment Bill and 2023 Draft Revenue Administration and Pension Laws Amendment Bill were published for public comment by the National Treasury and the South African Revenue Service (SARS) on 9 June 2023.
Two-Pot System Latest Developments
In an unexpected development on Wednesday, 25 October 2023, the National Treasury (NT) and the South African Revenue Service (SARS) made several proposals to the Parliamentary Standing Committee on Finance (Committee). If these proposals are accepted by Parliament, they will result in changes to the
implementation process of the two-pot system when compared with the final draft of the Taxation Laws Amendment Bill.
20 Years On… And The Efficient Group Is Still Standing Strong
Efficiency can be defined as the ability to achieve an end goal with little to no waste, effort, or energy. While efficiency is a key part of the Efficient Group’s inherent philosophy and the way that it goes about its business (the name says it all), this definition does not encapsulate the essence of the Group’s 20-year journey. Indeed, it has been an all-out effort from day one. Without endless energy, passion, and enthusiasm, there would be no Efficient Group today.
Too much global exposure can hurt your retirement
Until the early 2010s, South African investors had a strong bias towards investing in local markets. Offshore markets were generally perceived to be too far away and too inaccessible to consider. Data about performance and alternative investments was also not readily available until about a decade ago. In recent years, the tables seemed to have turned. Now, local investors want as much offshore exposure as possible.
Holistic financial advice The key to wealth, health and happiness
Holistic financial advice considers you as a whole, looking at your wealth, health, and happiness. It also factors in how those individuals fit into their networks of families and friends. Remember, we are connected to, and even depend on, other people, who in turn have similar bonds with us. If a financial advisor excludes any of these aspects from a holistic financial plan, the results will be sub-optimal and possibly completely unsuccessful.
Take Control Of Your Finances In 2023 With Efficient Wealth
At the start of a new year, many of us think about our finances. “How will I take control of my financial future?” “Does my financial situation allow me to reward myself every so often?” “How do I reward myself wisely – in a responsible way that won’t set me back in 2023?” If this is you, you’re asking all then right questions.
Financial fitness with Efficient Wealth #2023goals
As the year enters its second month, let one of your new year’s resolutions this 2023 be to become financially fit with our expert financial instructors at Efficient Wealth.
How to reward yourself wisely with Efficient Wealth
As you approach the finish line of another demanding year, it’s quite normal to think to yourself: “I’ve worked hard, I deserve a reward.” It could be that you have achieved some of your goals and are indeed reward worthy. Or, perhaps simply getting through this gruelling year is an achievement in itself? Point is, you’re only human. And while it’s human nature to want to treat yourself to something nice, it’s also that time of the year when human error creeps into our decision-making process.
Retirement fund changes that could be on the way in 2024
Draft legislation around retirement funds was released by the National Treasury for public comment on 29 July 2022 and the National Treasury’s draft response presented to Parliament on 20 September 2022 highlighted some changes. In a nutshell, if you are a retirement fund member when the proposed legislation changes are implemented, you will have a ‘two-pot system’ when it comes to your retirement savings.
Market Overview
It was a tough start to the year in January, for offshore markets in particular. Rising geopolitical tensions between the United States (US) and Russia, a more hawkish Federal Reserve (Fed), continued inflationary pressures, and a pric e drop of more than 20% in a single day for Netflix and Meta (the parent company of Facebook) all contributed to a rollercoaster ride in the
markets that, for the most part, ended in signif icant losses.
November Market Overview
November was another good month for local equities. It was also positive for most other local asset classes, as the market moved in contrast to its global counterparts amidst the increasing rate of COVID-19 infections and the discovery of the Omicron variant by South African scientists.
Private fund vs Umbrella fund
As consultants, we are often asked whether it is better to be in a private fund or an umbrella fund. At first glance, this is a complex question to answer, as it depends on an in-depth analysis to determine what is best for a company and its employees.
The importance of a valid and up-to-date Nomination of Beneficiaries form
Life events, such as untimely death, occur as part of our normal lives and we seldom have any or very little control to prevent such life events.