South Africa Trade Surplus Rises to Record High

• South Africa Trade Surplus Rises to Record High

South Africa recorded its largest trade surplus in almost three decades in December following the drop in the importation of equipment components, electronics and chemical products.

Africa’s second largest economy’s trade surplus rose from 13.1 billion rand in November to 15.7 billion rand, South African Revenue Service based in Pretoria said on Wednesday. This is the 11th consecutive month of surplus and the longest streak since 1999.

Importation of original equipment components decreased by 58 percent from November, but total exports declined by 10 percent while total imports fell by 14.1 percent in December. Bring total trade surplus for 2017 to 80.6 billion rand, up from 1.1 billion rand recorded in 2016.

The Rand gained 0.9 percent to 11.8556 against the U.S dollar in on Wednesday, while the yield on Rand-denominated government bonds due December 2026 declined by 7 basis points to 8.48 percent.

The positive trade balance has eased pressure on the current account and boosted the Rand below 12 a dollar for the first time since the first half of 2015. Another indication of improved domestic politics following the emergence of Cyril Ramaphosa as the leader of African National Congress in December.