What do you believe is the single most important factor driving up the cost of living in Nigeria?

The rand climbed to a 13-month high on Friday, riding a wave of optimism about South Africa’s economy and also buoyed by expectations of imminent Federal Reserve interest-rate cuts.

The South African currency advanced as much as 0.8% on Friday to 17.6069 per dollar, the strongest level since July 2023 and bringing its gain this year to 4.3%, the most in emerging markets after Malaysia’s ringgit.

Investors are looking more favourably at South African assets following the May 29 election, which saw the African National Congress enter into a coalition with the main opposition Democratic Alliance and smaller parties. That raised expectations of much-needed reforms to stimulate the economy.

With crippling load-shedding also easing, the outlook for the economy is bright, said Razia Khan, chief economist for Africa and the Middle East at Standard Chartered Plc.

Expectations of Fed policy easing starting next month are also prompting investors to look for higher-yielding assets such as South African rand bonds.

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