South African Markets Rise as Households Brace for Cost Increases

South Africa’s stock market recovered on Monday, with the FTSE/JSE All Share Index rising 1.43% amid gains in key shares, while households face rising costs from electricity and fuel price increases. Pensioners of the Government Employees Pension Fund (GEPF) are set to receive a 3.5% increase from April, but students are under pressure as online gambling consumes NSFAS allowances. 

South African Markets Rise (financial statistics on a screen)

Market Indices Show Broad-Based Gains

Sectors Driving the Rally

Rand Strengthens Amid Mixed Commodity Performance

Eskom Tariff Hike Adds Pressure on Households

South African households face mounting pressure as Eskom confirmed an electricity tariff increase of 8.76% for direct customers, effective 1 April 2026. Municipal customers will face an average 9.01% increase from 1 July. 

The hikes follow approval by the energy regulator, Nersa, for Eskom’s Retail Tariffs and Structural Adjustment application submitted in February. Municipalities have until 31 March to submit tariff applications, with public consultation running until 21 April. Final tariffs will be announced by 11 May. 

Eskom said the increase is necessary to maintain a stable electricity supply and covers the costs of generation, transmission, and distribution while supporting investment in infrastructure. The increase comes alongside rising fuel prices, with petrol climbing above R4 per litre and diesel exceeding R7 per litre, amplifying the financial burden on households. 

The utility noted that achieving reasonable future tariff increases depends on disciplined financial management and operational efficiency. Nersa considered both affordability and the long-term sustainability of the electricity system when approving the tariffs. 

Students’ NSFAS Allowances at Risk from Online Gambling

The National Student Financial Aid Scheme (NSFAS) has raised concerns about students using allowances for online gambling, particularly on illegal or offshore platforms. The scheme is partnering with the National Gambling Board (NGB) to raise awareness of gambling risks and protect public funds. 

Tech expert Siphumelele Zondi noted that sports betting and “Vegas-style” online games are particularly popular among students, who often reinvest winnings and lose funds entirely. Data from the NGB shows that R1.5 trillion was wagered in South Africa in 2024, with online gambling as the main driver of growth. 

Standard Bank chief economist Goolam Ballim said spending on online gambling could undermine household finances and long-term economic growth. Surveys indicate that half of South Africans spend up to R500 on gambling monthly, with nearly a third spending more than R2,350. Much of this revenue flows offshore, generating minimal tax revenue or employment locally. 

Ballim warned that gambling represents a redistribution of income rather than economic growth, diverting money from essential spending on goods and services, which would otherwise support jobs and local business activity. 

Pensioners Receive GEPF Increase

Pensioners of the Government Employees Pension Fund (GEPF) will receive a 3.5% increase, effective 1 April 2026. The adjustment applies in full to those who retired on or before 1 April 2025, while newer pensioners will receive a prorated adjustment based on the number of months they have been receiving their pension.  

The increase aligns with the year-on-year Consumer Price Index for November 2025 and exceeds the 75% base adjustment required under GEPF rules. The fund said the adjustment balances protecting pensioners’ purchasing power with maintaining the fund’s long-term stability. 

The GEPF emphasised that the decision reflects its commitment to ensuring pensioners can maintain their standard of living amid rising living costs, while keeping the fund financially sustainable. 

Notice and Disclaimer

This article is provided for general information and educational purposes only and does not constitute financial advice as defined by the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act). The content should not be relied upon as a basis for making any investment decisions. 

Please consult with a licensed financial advisor to determine if such investments are appropriate for your individual circumstances. 

Everest Wealth Management (Pty) Ltd is an authorised Financial Services Provider (FSP 795) and a registered credit provider NCRCP 21504. 

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