Tag: geopolitical tension

Investors should use mental models to find stillness in the midst of volatility. With gold reaching all-time highs and the JSE All-Share Index posting major gains, global markets remain full of activity. US fiscal concerns and ongoing geopolitical tensions add even more uncertainty. At present, there is rarely a dull moment for markets. However, this constant volatility generates mental noise.

There has been a sharp downturn in the price of bullion and gold equities. What has caused it, and where does it leave the outlook for gold from here? The fall in the gold price on October 21, a drop of 5.5%, was among the ten biggest single-day falls for the metal. Gold equities also suffered a big correction of approximately 9%.

Despite global economic uncertainty and geopolitical tensions, African CEOs are optimistic about their own organisations’ growth prospects. This is according to the our 2025 Africa CEO Outlook Survey, which captures the perspectives of 130 CEOs across Southern, East and West Africa.

Gold has always held a unique place in the global financial system. It doesn’t generate income or pay dividends. However, when inflation spikes, markets turn volatile or currencies weaken, gold often bucks the trend and rises to the occasion. In 2025, we’ve seen this pattern repeat itself. Gold has climbed to near-record highs.

Navigating the current volatile geopolitical and macroeconomic landscape is crucial for businesses. This is essential to ensure uninterrupted trade and access to finance. Escalating geopolitical tensions and strained trade relations continue to test global economic resilience.

South Africa’s major banks maintained steady growth in 2024 despite a challenging operating climate and macroeconomic uncertainties. Combined headline earnings grew by 5.9%, reaching R119 billion. This surpassed FY23 results. The combined ROE stood at 17.5% (FY23: 17.6%). The net interest margin was 451 bps (FY23: 459 bps). The credit loss ratio improved to 89 bps (FY23: 102 bps).

Leadership adaptation amid disruption is essential as organisations navigate rapid changes in technology, workplace dynamics and global challenges. The past few years have been among the most challenging in recent history.

With an economic growth forecast of only 1.6% over the next three years for South Africa, businesses are facing a tough trading environment, exacerbated by the impact of geopolitical tensions, disruptive new technologies, persistent weather catastrophe threats and failing public infrastructure and services.

South Africa’s major banks registered resilient growth against difficult operating conditions and a complex macroeconomic environment. Combined headline earnings growth of 13.8% against FY22 to R113.2 billion, combined ROE of 17.6% (FY22: 17.1%), net interest margin of 458 bps (FY22: 430 bps), credit loss ratio of 102 bps (FY22: 82 bps), cost-to-income ratio of 52.2% (FY22: 53%), common equity tier ratio of 13.2% (FY22: 13.5%).

Let’s not pretend! Times are tough! A flailing economy, escalating costs, load shedding, geopolitical tensions and elections coming up in 2024 - to name a few challenges. So how do we keep our heads down and our businesses afloat? Often, the same strategies that help achieve success during ‘easier’ years still largely apply – albeit with a heightened focus.