Water Tastings, Rising Markets, and a Parallel Economy: South Africa’s Week in Review
A curated water tasting priced at R295 a head became one of this week’s more eyebrow-raising talking points — a moment of luxury theatre in Stellenbosch that set an oddly fitting tone for a week defined by unusual contrasts. While the wealthier South Africans debated “glacial mouthfeel” and “volcanic minerality,” the hard realities elsewhere were far less whimsical: SARS revealed that the country’s illicit economy may now be worth up to R880 billion, and employers warned that the hunt for critical skills remains stubbornly difficult despite visa reforms.
Despite these contrasting developments, financial markets held steady. The JSE pushed higher, global sentiment held steady, and investors continued to favour steady bubbles over wild swings.
JSE Closes Firmer as All Share Tops 114,000
The Johannesburg Stock Exchange ended Thursday’s session stronger, with the All Share Index rising 1.01% to 114,046, extending a months-long upward trend. Industrials led the way with a 1.35% gain, closely followed by financials at 1.30%, while resources delivered a more modest 0.34% increase.
The broader picture remains upbeat: the All Share is up 23.33% year-to-date and 35.61% over 12 months, reflecting sustained investor confidence despite mixed local economic indicators, political noise, and global uncertainties.
Retail and Autos Outperform, Resource Counters Lag
Retail and automotive sectors led the gainers. The Foschini’s Group (FG) jumped 4.43%, with Motus climbing 4.23%, indicating renewed investor confidence in consumer-facing stocks ahead of the festive period.
Premier, FirstRand, and MTN also contributed to the positive session. In contrast, resource-linked counters underperformed: Alphamin fell 4.26%, Aspen slid 4.14%, and African Rainbow Minerals (RM) dropped 3.69%.
Sectoral performance highlighted an ongoing rotation toward alternative energy (+3.12%) and telecommunications (+2.49%), suggesting investors are slowly diversifying into technology, infrastructure, and green-economy plays.
Blue Chips See Heavy Trading as Tech and Mining Shine
Liquidity continued to concentrate in large-cap stocks. Naspers alone accounted for R1.8 billion in trade value, followed by AngloGold, FirstRand, and Gold Fields.
Miners and banks remain dual hedges — offering exposure to global commodity cycles and local financial stability.
Several blue-chip companies reached new 52-week highs, including ABSA, Attacq, Emira, and AngloGold, signalling that institutional investors are positioning for a stronger market in 2025.
Rand Firms Slightly, Gold Hits $4,200/oz
The rand strengthened slightly to R17.02 to the dollar, although it remains roughly 10% weaker than a year ago.
Precious metals continued their upward trajectory, with gold rising to $4,201 per ounce, a nearly 59% year-over-year increase, while silver and platinum also held firm.
Brent crude traded at $63.86, offering some relief for domestic fuel price pressures.
Global Markets Hold Firm, Crypto Retreats
International markets remained largely steady. Japan’s Nikkei closed at 50,368, while America’s S&P 500 held at 6,737, both near record levels. In contrast, cryptocurrency investors faced a softer session: Bitcoin fell 0.96% to $97,771, extending a multi-month decline of –16.3%.
Stellenbosch Water Tastings Capture the Public Imagination
In a lighter moment, the world’s first Fine Water Tasting Room opened at Lanzerac in Stellenbosch. Founded by Franschhoek water sommelier Nico Pieterse, the 45-minute sessions allow participants to sample waters from mineral-rich springs, glacial sources in Iceland, and volcanic aquifers.
The tasting experience mirrors that of wine, with guided notes on aroma, texture, and mineral composition. Lanzerac, previously owned by disgraced former Steinhoff CEO Markus Jooste, now hosts the concept inside The Library, offering visitors a chance to reimagine water as a luxury product rather than a daily necessity.
SARS Targets Expanding Illicit Economy
Meanwhile, SARS has raised the alarm over the illicit economy, now estimated to account for 10% to 15% of GDP, equating to R570 billion to R880 billion in illegal activity. Tobacco remains the single largest contributor, with research suggesting the illicit cigarette trade now makes up 60% to 75% of the market, resulting in tax losses of up to R84 billion.
Organised crime has expanded from tobacco into fuel adulteration, illegal mining, property schemes, and cross-border money flows.
Despite this, SARS reported R30 billion in revenue recovery in 2024/25, dismantling four illicit financial-flow schemes and executing targeted interventions in gold, fuel, and smuggled alcohol.
Critical Skills Shortages Continue to Bite
South African employers continue to struggle to fill key positions. According to the 2025 Xpatweb Critical Skills Survey, 84% of companies report difficulties recruiting skilled professionals despite recent visa reforms.
Shortages are most acute in engineering, ICT, healthcare, STEM education, and artisanal trades.
Deputy Finance Minister Ashor Sarupen stressed that hiring a single highly skilled professional creates an estimated seven additional jobs, highlighting the economic importance of resolving these shortages.
Although new programs like the Trusted Employer Scheme (TES) and Points-Based System (PBS) have improved visa efficiency, bottlenecks persist, particularly at embassies and VFS centres, which remain the top pain point for almost half of employers.
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.
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