JSE Lifts as Vodacom Settlement, Youth Fund, and Market Gains Spur Optimism
The Johannesburg Stock Exchange (JSE) ended higher on Wednesday, closing a day packed with major corporate and economic developments. Investors welcomed Vodacom’s long-awaited settlement with “Please Call Me” inventor Kenneth Makate, as well as the National Youth Development Agency’s (NYDA) announcement of a R2.5 billion youth empowerment fund aimed at tackling unemployment.
Despite grim labour statistics released this week, the market finished in positive territory as resources and retailers advanced on firmer commodity prices and a steadier rand.
The All Share Index rose 1.32% to 108,796 points, while the Top 40 gained 1.38%. The Resource 10 Index jumped 2.57%, financials climbed 1.29%, and industrials edged 0.65% higher.
Vodacom and Makate Reach Final Settlement
After more than two decades of courtroom battles, Vodacom has reached a confidential out-of-court settlement with Kenneth Makate, bringing to a close one of South Africa’s longest-running corporate disputes.
Vodacom confirmed that its board approved the agreement, indicating that the matter will no longer proceed in the courts. The company will account for the settlement in its interim results for the six months ended 30 September 2025.
The dispute began in 2001 when Makate, then a Vodacom employee, pitched the idea of a free “Please Call Me” service, allowing users to send a callback request without incurring airtime costs. When the idea became a commercial success, Makate claimed he had not been fairly compensated. The legal fight escalated to the Constitutional Court, which ordered Vodacom to negotiate a reasonable payment.
Following Wednesday’s announcement, Vodacom withdrew its appeal to the Supreme Court of Appeal and abandoned earlier judgments, formally ending the saga. While the company did not disclose figures, investors reacted positively, and Vodacom’s share price moved slightly higher in late trading.
NYDA Launches R2.5 Billion Youth Empowerment Fund
In another major development, the National Youth Development Agency (NYDA) announced a R2.5 billion youth empowerment fund designed to support small businesses and help combat rising unemployment among young South Africans.
Deputy Chairperson Bonga Makhanya said the fund will provide financial assistance of between R750,000 and R2 million per business, focusing on agriculture, renewable energy, industrial development, and property ownership. Funding will be sourced both locally and internationally over the next three years.
“This initiative aims to give young entrepreneurs access to finance and help them build sustainable enterprises that contribute to the economy,” Makhanya told Newzroom Afrika. He added that the success of the project depends on strong collaboration between the government, development banks such as the DBSA and IDC, and private-sector partners.
Alarming Unemployment Data Paints a Grim Picture
Despite these efforts, South Africa’s unemployment crisis remains one of the most pressing challenges facing the country. A new analysis by Coronation Fund Managers shows that more than three-quarters of unemployed South Africans have been without work for over a year, the highest level of long-term unemployment in the G20.
According to Coronation’s latest Corospondent report, the number of unemployed people has surged from 3.7 million in 1994 to 12.6 million in 2025, while the working-age population has grown from 40.6 million to 64.1 million. Total employment has increased by only about 2.2 million during that period.
The country’s official unemployment rate stands at 32.6%, with the expanded rate, which includes discouraged job seekers, at 41.2%. The youth unemployment rate remains at a staggering 62.2%. The South African Reserve Bank noted that nearly half of the unemployed are new entrants to the labour market, most of them young people leaving school or university who cannot find work.
Rand Steady as Gold and Retail Shares Gain
The rand held firm, trading at R17.38 to the US dollar, R20.00 to the euro, and R22.69 to the pound.
Commodity prices supported the rally, with gold rising 0.21% to $3,987.75 an ounce, while Brent crude oil ticked up 0.32% to $63.68 a barrel. Mining counters were among the day’s best performers: Gold Fields climbed 4.46% and Exxaro added 3.35%.
Retailers also fared well, with The Foschini Group (TFG) up 5.21%, Truworths rising 5.08%, and SPAR gaining 4.53%, suggesting cautious optimism about consumer spending heading into the festive season. On the downside, Aspen Pharmacare lost 4.15%, and Alphamin fell 3.36% after investors took profits.
Global Markets Show Modest Gains
Internationally, stock markets were steady. Japan’s Nikkei 225 closed higher at 50,964 points, while Europe’s DAX and CAC 40 indices inched up. In the United States, the Dow Jones and S&P 500 posted mild gains as investors weighed mixed economic data and awaited upcoming corporate earnings.
In digital-asset markets, Bitcoin traded just above $103,000, up 0.14% on the day but still below recent peaks. The cryptocurrency remains roughly 10% higher than a year ago, showing that interest in digital investments continues even as global financial conditions tighten.
Important 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.