South Africa Update March 2025

2025 has certainly been keeping us on the edge of our seats in South Africa with global and local politics providing twists and turns worthy of a Netflix drama. 

In an unprecedented move, the 2025 Budget Speech scheduled for 19 February was cancelled after its initial set starting time. This followed a disagreement between parties within the Government of National Unity (GNU) on the proposals within the budget. The budget is now set to be delivered on 12 March, when the Isle of Man Indaba is in South Africa delivering its series of events. Though it is positive that the GNU managed to pull back (only just in time), a message of stability and consistent, calm policy making will be timely.

Furthermore, sweeping and stunning announcements from the USA has had a unifying effect within South Africa as well as reshaping global alliances. Following the USA’s nonparticipation in the opening round of G20 summit hosted in South Africa in February, China, the UK and EU have publicly thrown their support behind South Africa for the G20 Presidency this year. Foreign Secretary David Lammy as well as Chancellor Rachel Reeves attended the talks demonstrating the UK's commitment to South Africa. 

The Mining Indaba took place in the first week of February and drew a large international crowd. The spotlight was very much on rising elecricity costs in South Africa hampering Mining & Manufacturing, as well as the undeniable role of critical - and rare earth minerals in global conflicts and alliances, as is currently demonstrated in the US-Ukraine negotiations. Sustainable Finance is becoming a growing role player in this sector too.

It was good to support two visiting Isle of Man companies (Fortress Group and FIM Capital) as they conducted their business here and found the market welcoming and positive. I look forward to the Isle of Man Indaba events as we will look to build awareness and trust in the Isle of Man as a jurisdiction and put the spotlight on the quality and value of our service providers.

Written by Cecilia Albertyn, South Africa Business Development Specialist