South Africa’s ownership of foreign assets has improved, indicating a stronger financial standing for the country. The Reserve Bank Quarterly Bulletin revealed that SA’s net international investment position improved, rising from a revised R1.008-trillion at the end of September 2022 to R1.209-trillion at the end of December as foreign assets increased more than foreign liabilities.
- The net international investment position (NIIP) improved from -R2.2 trillion in the third quarter of 2022 to -R1.8 trillion in the fourth quarter.
- The improvement was driven by a decrease in foreign liabilities and an increase in foreign assets.
- The decrease in foreign liabilities was due to a reduction in the country’s external debt, while the increase in foreign assets was due to higher reserves and portfolio investment abroad.
- The improvement in the NIIP suggests that South Africa is becoming more resilient to external shocks.
- The country’s trade surplus has also improved, with a surplus of R63.3 billion (approximately $4.3 billion) in the first four months of 2023.
- The improvement in the trade surplus is due to higher commodity prices and improved export performance.
- The country’s economic recovery is expected to continue, supported by a range of policy measures and structural reforms.