SAGCC Market & Economic Snapshot | Q3 2026

Transnet's decision to invite private sector partners to redevelop and operate key terminals at the Port of Cape Town represents a significant structural reform aimed at improving one of South Africa's most critical trade gateways.

For German companies, this development extends beyond a port infrastructure project. It signals a continued commitment to increasing private sector participation in strategic infrastructure, improving logistics efficiency and enhancing South Africa's competitiveness as a regional trade and investment hub.

Improved port performance has the potential to deliver tangible benefits for businesses involved in manufacturing, automotive, agriculture, renewable energy and import/export activities by reducing logistics delays and improving supply chain reliability. With these processes running smoothly, the cost of moving goods from port to household could stand to decrease.

Research commissioned by the Western Cape Government estimates that a more efficient Port of Cape Town could unlock approximately 6 billion ZAR in additional exports, support close to 20 000 jobs and generate over 1 6 billion ZAR in additional tax revenue, highlighting the wider economic impact of improved local logistics infrastructure.

Our focus under this topic would be to monitor the progress of the private sector participation at South African ports. As further developments are made, we are certain that the impacted reforms will benefit German investors and exporters. As a team, we are optimistic that this will improve the attractiveness of South Africa as a manufacturing, distribution and regional hub for German companies wishing to land on African shores.

South Africa's freight logistics reform programme continues to gain momentum, with the Minister of Transport reaffirming government's commitment to improving the country's rail and port infrastructure through the National Freight Logistics Roadmap.

Key reforms include opening the freight rail network to private operators, along with the Cape Town port as discussed above. Private rail operators are expected to commence operations from April next year, marking a significant milestone in the liberalisation of South Africa's freight logistics sector.

For German investors, these developments are particularly relevant. Inefficient logistics are evidently being highlighted as a pain point by both local and foreign investors, however with this new focus to reform the transportation of goods and resources, entry to market for foreign companies could be simplified. This development is one which German investors are keeping a close eye on.

Together with better structured and managed ports, improved rail connectivity has the potential to reduce supply chain disruptions, lower transport costs and increase certainty for businesses importing into, exporting from and operating within South Africa.

The reforms also signal government's continued commitment to increasing private sector participation in strategic infrastructure. This creates greater confidence for foreign investors by demonstrating a move towards a more competitive, customer-focused and commercially driven logistics environment.

With the above in motion, South Africa has the opportunity to maintain their reputation as the “Gateway to Africa”.

Airports Company South Africa (ACSA) has announced a R21.7 billion infrastructure investment programme over the next five years, focused on improving airport capacity, passenger experience, operational performance and regulatory compliance.

Major projects include:

O.R. Tambo International Airport

• Expansion of passenger holding areas
• Additional bus gates
• Midfield Cargo Terminal development
• Future passenger terminal
• Refurbishment of passenger facilities

Cape Town International Airport

• Terminal expansion
• Additional contact gates
• Boarding bridge expansion
• Baggage handling improvements
• Long-term runway development project

Regional Airports

• George Airport expansion
• Chief Dawid Stuurman International Airport expansion
• Future terminal development at King Shaka International Airport
• Pietermaritzburg Airport modernisation

In addition, ACSA invested approximately R825 million in technology modernisation initiatives, including smart airport systems, digital passenger services, enhanced security platforms and future AI-enabled solutions.

These developments create potential opportunities for German companies specialising in:

• Airport engineering
• Aviation infrastructure
• Security systems
• Smart mobility solutions
• Airport automation
• Digital technologies
• Construction and project management

The modernization programme reflects a broader commitment to upgrading strategic transport infrastructure and supporting long-term economic growth.

A major transaction currently under review is Coca-Cola HBC's acquisition of a 75% controlling stake in Coca-Cola Beverages Africa (CCBA), valued at approximately US$3.4 billion.

The transaction is one of the largest consumer-sector deals in Africa and highlights continued multinational confidence in African consumer markets despite economic uncertainty.

Importantly, Coca-Cola HBC has committed to pursuing a secondary JSE listing, reinforcing its long-term commitment to South Africa.

ADNOC Distribution has agreed to acquire 100% of Shell Downstream South Africa for an implied enterprise value of approximately US$1 billion.

The transaction includes:

• Approximately 580 service stations
• Wholesale fuel operations
• Aviation fuels
• Lubricants business

This deal further demonstrates continued international interest in South African strategic assets and expands ADNOC's footprint on the African continent.

The proposed acquisition of Safair Holdings by Harith Aviation has received conditional support from competition authorities.

The transaction supports FlySafair's continued development while ensuring compliance with airline ownership regulations and maintaining competitive access within the aviation sector.

Novus has continued increasing its ownership position in technology distributor Mustek.

The transaction highlights ongoing consolidation and strategic investment within South Africa's technology sector.

Capitalworks successfully achieved a first close on its latest private equity fund, targeting approximately US$350 million.

The fund will focus on investments across:

• Industrials
• Healthcare
• Consumer sectors
• Financial services

The successful fundraising demonstrates continued international confidence in African private equity markets.

Technology company Cue secured investment from Knife Capital and FAM to accelerate growth initiatives and strengthen its market position.

The transaction reflects continued investor interest in scalable South African technology businesses despite a challenging funding environment.

Brait announced plans to raise approximately R2.5 billion to strengthen its balance sheet and improve strategic flexibility across its investment portfolio.

Statistics South Africa reported consumer inflation at 5.0% year-on-year, representing the highest reading since June 2024.

The increase was largely driven by fuel and transport costs.

Despite upward pressure, inflation remains within the South African Reserve Bank's target range of 3% to 6%.

The South African Reserve Bank maintained the repo rate at 7.0%.

The decision reflects confidence that inflationary pressures are largely supply-side driven rather than the result of excessive domestic demand.

For investors, the decision provides policy certainty and supports business planning while preserving monetary stability.

Charles Shilowa assumed the role of Acting CEO of Airports Company South Africa on 1 July 2026, succeeding Nompumelelo Mpofu.

Irvin Phenyane was also appointed Chairperson of the ACSA Board as part of broader governance changes.

These appointments come at an important time as ACSA embarks on its significant infrastructure expansion programme.

Important developments across Africa's aviation sector include:

• African Development Bank initiatives promoting aviation infrastructure financing
• IATA's Focus Africa safety programme
• Increased emphasis on pilot and technical skills development
• Greater focus on long-term aviation capacity growth

These developments are expected to support future aviation investment opportunities across the continent.

Former De Beers CEO Gareth Penny has returned to play a strategic role during a period of restructuring and transformation within the company.

The appointment comes as De Beers navigates changing global diamond market dynamics and evaluates future ownership and strategic options.

Old Mutual has announced plans to move its Zimbabwe listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange (VFEX).

The move reflects the growing importance of the VFEX as an international investment platform offering US dollar settlement and improved accessibility for international investors.