South Africa Faces Complex Challenges as Markets Rally and Key Social Issues Emerge
President Cyril Ramaphosa faces sleepless nights as South Africa’s unemployment crisis deepens, leaving millions without work, even as the country continues to attract jobseekers from Lesotho, where opportunities are far more limited.
At the same time, the 2025 matric results hit a record 88% pass rate, showing progress in education while raising questions about whether the economy can absorb a growing pool of school leavers.
Meanwhile, legal developments involving billionaire Patrice Motsepe in the Tanzanian courts have drawn attention to business rules and risks across the region.
Markets: JSE Hits Record High as Resources Lead
The JSE started the week strongly, with the All Share Index rising 1.73% to a record 120,148 points. The market opened firmly, gained momentum during the session, and closed at the top of the day’s range, signalling sustained investor confidence. Year-to-date gains now exceed 23%, while longer-term trends remain solidly upward.
Resource shares were the main drivers of the rally. The Resource 10 Index surged 5.73%, led by gold and platinum producers. Harmony, Impala Platinum, Northam, Thungela, and Sibanye-Stillwater all posted significant gains. Gold companies, including AngloGold Ashanti, Gold Fields, and DRDGOLD, also performed strongly, reflecting continued investor interest in precious metals, even as spot prices eased slightly.
Industrial shares recorded modest gains. The All Share Industrials Index rose 0.62%, while the Top 40 increased just over 2%, supported by big rand-hedge companies such as Prosus, Napers, and Glencore. Financials, by contrast, fell slightly, with the Financial 15 down 0.74%, mainly due to weaker shares such as Sanlam and Remgro. Small-cap stocks also lost ground, showing that investor appetite remains selective.
Trading was concentrated in large-cap mining and global stocks. Gold Fields, Valterra, AngloGold Ashanti, and Napers led turnover by value. Several mining counters reached new 52-week highs, underlining confidence in the commodities sector.
The rand strengthened slightly to around R16.41 to the US dollar. Internationally, equity markets held near record levels, while bitcoin edged above $91,000 despite some volatility.
Migration Pressures: Lesotho Continues to Look South
South Africa remains a key destination for workers from Lesotho, where jobs are limited. Many Basotho continue to view South Africa as a place of opportunity, often working in construction, domestic work, agriculture, and the informal sectors.
This migration highlights economic differences in the region and adds pressure to South Africa’s labour market and public services. Border towns and major urban centres see particularly high demand for housing, healthcare, and education.
Economists say that while South Africa’s stronger economy draws workers from neighbouring countries, the influx also shows the need for long-term solutions to create more jobs at home.
Government officials note that migration from Lesotho has a dual effect. While remittances sent home can support families and local economies, the movement increases competition for jobs within South Africa.
Matric Results: Record Pass Rate
The 2025 matric results marked a historic milestone, with 88% of learners passing, up from 87.3% in 2024. Over 900,000 students wrote exams across 6,000 centres — the largest cohort in the system’s history. All 75 districts recorded pass rates above 80%, with KwaZulu-Natal leading at 90.6%, followed by the Free State and Gauteng.
Almost half of all passes qualified learners for entry into a bachelor’s degree, while diploma and higher certificate passes were also strong.
The Department of Basic Education (DBE) is working to improve learning outcomes from an early age, ensuring children can read for meaning by Grade 4 and implementing measures to reduce grade repetition. These steps aim to ensure that high matric pass rates translate into real opportunities for further study and work.
Exam Leak: Contained but Raises Questions
While the results were celebrated, a leak affecting 40 pupils in Pretoria covering English, Mathematics, and Physical Science papers drew attention to the integrity of national examinations. Investigations found that suspended DBE officials were involved, including one whose child took the affected exams.
The DBE said the leak was quickly contained and emphasised the department’s ability to detect irregularities.
Officials defended their role in administering national exams, noting that giving up control could undermine years of investment in a nationally recognised system.
Motsepe in Tanzanian Courts: Business and Legal Implications
Billionaire Patrice Motsepe and several of his companies have sought protection from South African courts against an imminent Tanzanian ruling in a $195 million mining dispute.
Pula Graphite alleges that Motsepe-linked companies breached a 2019 confidentiality agreement by using its information to invest in a rival graphite project. Motsepe and the companies deny the claims.
African Rainbow Capital (ARC), one of the companies involved, filed an ex parte application in the Johannesburg High Court for an expedited hearing.
Pula Graphite says the move is a delaying tactic, as the Tanzanian court is expected to schedule a trial soon. Earlier proceedings in Tanzania saw ARC, ARCH Sustainable Resources, and Motsepe lose standing after failing to appear at hearings.
The case has focused on procedural and jurisdictional issues, with Pula raising concerns about transparency. Default judgment has been granted in Tanzania, and petitions by Motsepe-linked parties to re-enter the case were denied. The South African courts are now considering the companies’ request for protection.
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