SA Markets Sink as Global Risk-Off Mood Deepens — While Safety Concerns Push Wealth to Mauritius and New Licensing Laws Spark Backlash
South Africa started this week on a jittery note, with the JSE sliding sharply as global markets pulled back, commodity prices softened, and investors retreated into safer assets.
The downturn unfolded against a backdrop of growing domestic uncertainty, from the introduction of new business licensing laws sparking fierce criticism, to fresh legal battles at Transnet, and a rising trend of wealthy South Africans buying residency and living the island dream in Mauritius, which is now ranked the safest country in Africa.
JSE Pulls Back as Momentum Fades
The JSE All Share Index fell 1.82% to close at 111,973, signalling widespread investor caution despite the market’s impressive performance earlier in the year. The index’s trading range, fluctuating between 110,794 and 113,156, highlighted a volatile session with little buyer conviction. This weakness follows a strong 20.9% year-to-date gain and a 33% rise over the past 12 months, suggesting that some investors are locking in profits as global volatility intensifies.
Resource stocks were the most heavily sold, dragging the broader market down. The Resource 10 Index shed 2.75%, with gold counters suffering the steepest losses. Harmony retreated almost 6%, followed by AngloGold (-3.79%) and Gold Fields (-2.74%). Their decline mirrored softer gold prices, which dipped 0.08% intraday after a far steeper 2% fall the previous day. Despite the metal remaining historically high, the short-term cooling was enough to hit mining shares hard.
Large-cap tech-linked counters also struggled, with Naspers falling 4.02%, Prosus down 3.06% and BHP losing 2.57%. Richemont was the only bright light at the upper end of the market, jumping 4.52% on the back of resilient demand in luxury goods.
Currencies Steady, Commodities Mixed as Global Markets Retreat
Despite the slump in equities, the rand held relatively steady at around R17.10 to the dollar, suggesting the pullback was driven more by equity market dynamics than currency fear.
Commodity movements were inconsistent: platinum edged up 1.07%, Brent crude drifted 0.62% lower, and gold hovered slightly negative. Without strong commodity support, which traditionally has been a buffer for South Africa, the local market was left exposed to global risk-off sentiment.
International markets also weakened. Japan’s Nikkei fell 1.68%, while European and US indices traded more softly. Bitcoin posted a minor 0.32% recovery after a sharp decline the previous day but remains negative for the year.
As Markets Wobble, Wealthy South Africans Push Offshore — Mauritius Tops the List
Away from the stock market, a different trend is accelerating: affluent South Africans are buying residency through property investments in Mauritius, ranked Africa’s safest country for the 18th consecutive year. According to Pam Golding Property Group, the island has become a magnet for South Africans seeking stability, security, and a reliable offshore asset base.
Mauritius offers permanent residency for foreign buyers who purchase property worth at least USD 375,000 (about R6.4 million). The island’s appeal goes beyond lifestyle perks; modern healthcare, efficient infrastructure, a well-regulated property market, and a favourable tax regime make it an attractive option for wealth protection and long-term planning.
Demand from South Africans has surged post-COVID, with buyers typically falling into three groups: retirees seeking a safer dual-base lifestyle; families securing offshore residency for future relocation; and investors wanting to diversify their portfolios.
Increasingly, expatriate South Africans living in countries such as the UK, Canada, and the UAE are relocating permanently to Mauritius, drawn by its mild climate, safety, and stable governance.
The 2025 Global Peace Index ranks Mauritius 26th worldwide, safer than the UK, France, and the US. In contrast, sub-Saharan Africa remains the region with the highest number of conflicts, making Mauritius stand out as an outlier of stability.
New Licensing Laws Spark Anger Across the Business Sector
Back home, new government policy developments have unsettled businesses and ruffled even more feathers. The newly gazetted draft Business Licensing Bill has drawn fierce opposition from economists, employers, and industry bodies, who warn that the legislation is unworkable and “dangerous”.
The Bill proposes a uniform national licensing system requiring every business in South Africa to obtain a licence valid for five years, overseen by local municipalities. Inspectors would have the power to demand licences on the spot, issue fines, and, in some cases, confiscate goods.
Critics argue that this opens the door to increased red tape, corruption, and arbitrary enforcement — especially at the municipal level, where capacity and governance remain uneven.
Business Unity South Africa warned that the Bill contradicts the National Development Plan’s vision of small businesses driving 90% of new jobs by 2030. Instead of reducing barriers, the new law risks adding another layer of compliance pressure to an already strained SME sector. Sakeliga echoed this view, saying the Bill prioritises political objectives over market freedom.
Transnet Faces Fresh Turmoil as IT Feud Escalates
Adding to the climate of uncertainty, Transnet is now appealing a High Court ruling to prevent it from cutting ties with Gijima Holdings after a R1.5-billion IT contract ended in 2024.
Gijima refused to hand over control without a workable transition plan, warning that an abrupt switch-off would disrupt operations.
The High Court ruled that Transnet does not yet have the technical capacity to take over the system.
Transnet disputes this, arguing that the court ignored key contractual facts and that Gijima’s refusal to disengage is costing taxpayers unnecessary money.
Gijima, meanwhile, insists Transnet is acting on flawed advice and is now pursuing an appeal with “no prospects of success”.
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