South Africa’s 10-year government bond yield was around 8.9%, the lowest since December 2024, reflecting improved investor confidence in the country’s economic fundamentals. Strong performance in South African assets this year has been supported by progress on fiscal consolidation, the stability of the coalition government (GNU), alongside structural improvements such as more reliable electricity and increased infrastructure investment. Disinflation efforts by the South African Reserve Bank and prospects of a lower inflation target were also significant factors. Falling inflation allowed the central bank to cut its benchmark rate three times this year, reaching the lowest level since January 2022. Meanwhile, South Africa is on the verge of exiting the Financial Action Taskforce’s “grey” list, which could boost fresh investment inflows. Grey-listed in February 2023, the country has been tackling strategic shortcomings in anti-money laundering and counter-terrorist financing.