A stronger rand will increase the purchasing power of renewable-energy providers who source components from China. A healthier currency is “very useful,” especially for the solar power industry, Boynton says from Cape Town. “It’s a big plus.”
Boynton says the rand is likely to continue to be “very volatile”, but is likely to appreciate this year. OMAI predicts that South Africa will have a flat current-account balance in 2021, rather than the usual deficit. There has been a “material change” in the balance of trade as the country’s exports have held up well, while imports have suffered due to Covid-19, he says.