JOHANNESBURG - Despite South Africa’s developed and deep financial markets,
the country continues to face some of the highest borrowing costs among emerging economies.
Real interest rates, especially long-term yields, remain elevated.
They're driven by weak business confidence, limited market competition, and deep-rooted fiscal challenges.
While banks and companies benefit from access to local debt markets, structural issues keep funding costs high across the board, limiting investment and growth.
The Reserve Bank has begun cutting rates, but without meaningful economic reform, borrowing will remain expensive.
This has the potential to reinforce a cycle of slow growth and high interest rates needed to attract capital.