Consumers in South Africa faced a sharper increase in the cost of living in June than economists had predicted. Annual inflation accelerated to 5%, up from 4.5% in May. This figure reached the level observed in June 2024, which was caused by increased transport costs.
According to Statistics South Africa data, consumer prices rose by 0.7% month-on-month. The transport, housing, and utility sectors, as well as insurance and financial services, contributed most significantly to annual inflation. Transport became the main driver, accelerating by 12.7%. Housing and utility price increases amounted to 5.5%, while insurance and financial services saw a rise of 5.9%.
Meanwhile, inflation in the food segment remained relatively moderate. Annual inflation for food and non-alcoholic beverages was 1.6%. Specifically, the price of cereals continued to fall (deflation) by 1.5%, and fruit prices dropped by 10% compared to the previous year. However, meat prices rose by 5.1% year-on-year, and the cost of electricity, gas, and other fuels increased by 9.9%, with fuel prices being 34.3% higher than in June 2025.
Despite expectations of growth, economists predicted that annual inflation in June would be slightly higher, in the range of 4.7%–4.8%, attributed to rising fuel prices. These forecasts suggested that inflation would remain within the target range set by the South African Reserve Bank, which is 3% with an allowable deviation of one percentage point in either direction. Many experts viewed the recent rise as a temporary phenomenon rather than the start of a sustained acceleration in price growth.
Johann Els, Chief Economist at PSG, expected annual inflation to reach around 4.8% in June, mainly due to the rise in petrol prices. Nevertheless, he noted that this increase would be short-lived, as the expected reduction in fuel prices introduced in July should allow inflation to fall back to a level between 4.2% and 4.3%.
Els also mentioned that inflation expectations rose in the second quarter after oil prices climbed to approximately $100 per barrel. However, since then, oil prices have fallen to $74 per barrel, and lower prices for petrol and diesel in July should ease the financial situation of households in the coming months. These comments from Els preceded the resumption of hostilities in the Middle East, which led to a renewed rise in oil prices above $85 per barrel.
Samuel Seeff, Chairman of Seeff Property Group, forecasted that inflation in June would be around 4.7%. Acknowledging the expected increase, he noted that the projected average annual inflation remained below the central bank's upper target limit of 4%, indicating that inflation should remain generally controlled. Seeff argued that the expected rise in June reflects a temporary spike, whereas the impact of interest rate hikes on consumers and the economy is felt much longer. He added that prolonged restrictive monetary policy has contributed to weak economic growth and continues to put pressure on the property market.
Vishal Rama, Portfolio Manager at Prescient Investment Management, also predicted annual inflation to rise to 4.7%–4.8%, primarily linked to increased transport costs following the rise in fuel prices in June. Rama believed that food inflation would continue to slow down due to favorable base effects and falling fresh produce prices, helping to offset some of the pressure created by transport costs. In his view, despite transport becoming the largest factor in headline inflation recently, easing food price pressures should limit broader inflationary pressure, suggesting that June may mark the peak of the current inflation cycle.
Meanwhile, Investec revised its forecast for average inflation in 2026 upwards, setting it at 3.7% instead of the previous 3.3%, reflecting the impact of higher international oil prices on inflation outlooks.
Transnet National Ports Authority has initiated a competitive tender for a 25-year concession to redevelop, finance, and operate a key multi-purpose terminal in the Port of Cape Town.
This long-awaited request for proposals, issued under Section 56 of the National Ports Act, concerns an extensive terminal spanning 119,849 square meters, located in the Duncan Dock area of the Port of Cape Town. This initiative marks a significant step in the country's effort to upgrade its freight network by engaging the private sector.
The strategic intervention occurs at a critical juncture for this maritime gateway, which has faced serious operational difficulties, accumulated maintenance issues, and wind-related disruptions, negatively impacting its global standing. Currently, the facility is managed by a private lessee whose contract expires in 2027, and it will be completely transformed following a successful tender.
The concessionaire winning the tender will be responsible for the design, financing, refurbishment, operation, maintenance, and subsequent handover of the modernized, energy-efficient terminal to the state at the end of the twenty-five-year agreement. Through the implementation of advanced digital systems, optimized terminal layouts, and modern handling equipment, the modernization aims to significantly increase throughput for containerized, dry bulk, and general cargo.
Leaders of the Western Cape welcomed the announcement with unanimous praise, viewing the reform as an indispensable victory for regional economic growth and global competitiveness. Premier Alan Windey emphasized the direct link between port efficiency and job creation, noting the significant pressure logistical delays place on the province's export-oriented industries.
Premier Windey stated: 'Western Cape exporters depend on a fully functioning port. We have consistently called for reforms that enhance efficiency and strengthen South Africa's logistics network. I welcome Transnet's decision to invite private sector investment and expertise into the Port of Cape Town.' He added that 'improving port productivity goes far beyond logistics. A more efficient port helps businesses grow, attracts investment, expands exports, and creates jobs. This strengthens Western Cape's ability to compete globally and supports our goal of building a prosperous, growing economy.'
The Minister of Agriculture, Economic Development and Tourism for the Western Cape, Dr. Ivan Meyer, highlighted the vital dependence of local producers, manufacturers, and fishing industries on uninterrupted supply chains. Dr. Meyer noted that 'a more efficient Port of Cape Town ultimately affects jobs. When exporters can deliver their products to market faster and cheaper, businesses can scale up production, access new markets, and hire more people.'
He stressed that resolving terminal issues strengthens the entire value chain, starting from rural farms and manufacturing enterprises to logistics companies and retail stores. The need for reform is supported by an independent study commissioned by the Western Cape Government, which indicated that a fully efficient Cape Town port could unlock an additional 6 billion rand in exports, generate over 1.6 billion rand in tax revenue, and support approximately 20,000 jobs.
Mayor Jordyn Hill-Lewis also supported the tender as a vital achievement for the port, which had previously ranked last in the World Bank's Container Port Performance Index. Hill-Lewis stated: 'We welcome Transnet's call to private sector partners to modernize and operate the multi-purpose terminal in the Port of Cape Town—this is precisely the major reform we have been demanding in the City for a long time.'
He pointed to the cumulative impact of private sector participation and Transnet's R3.4 billion capital investment initiative. TNPA's current manager, Ophelia Shabane, noted that the long-term concession will strengthen the terminal's overall capabilities, ensuring the port's flexibility and readiness for the future. She emphasized that the strategy is already yielding tangible results on the ground, aided by operational improvements and engineering solutions such as 10 permanently deployed shore tugs, which reduced downtime due to long swells by 92%. Shabane stated: 'The Port of Cape Town continues to achieve measurable progress in improving operational performance and service delivery. These achievements demonstrate the impact of targeted interventions, infrastructure investments, and close collaboration with terminal operators and industry stakeholders.'
Recent performance indicators show a stable recovery of operations. The turnaround time for the container terminal sharply decreased from 103 hours in 2023/24 to 74 hours in 2025/26, with current year averages reaching 58 hours. Concurrently, the average waiting time in anchorage dropped from 127 hours to 79 hours, accompanied by strong growth in container and bulk cargo segments. Potential tender participants can attend a non-mandatory briefing at the port on August 6, 2026, ahead of the official application deadline of November 20, 2026.
James Vos, a Mayco member for economic growth, noted that port reliability remains the biggest constraint to local business expansion, emphasizing that the harbour must leverage its location along leading global maritime trade routes to become a competitive advantage rather than a costly bottleneck. This shift is central to Transnet's broader 'Reinvent for Growth' strategy, aimed at expanding capacity along national logistics corridors. Private operators are already a cornerstone of the port system, managing 78% of all terminals handling bulk, general, liquid, and multi-purpose cargo across 82 leases nationwide. In the Port of Cape Town itself, nine out of eleven terminals are currently under private operation.
The Prime Ministers of Kazakhstan and Uzbekistan, Olzhas Bektenov and Abdulla Aripov, visited the Aktau International Seaport as part of a meeting of the Joint Intergovernmental Commission on bilateral cooperation. During the meeting, they discussed opportunities to expand cargo transportation along the Trans-Caspian International Transport Route, according to the press service of the Prime Minister of Kazakhstan.
Both heads of government reviewed the infrastructure and operational capabilities of the Aktau port, which is Kazakhstan's largest seaport and one of the key hubs of the Middle Corridor. The port covers an area of 44 hectares and is capable of processing up to 12 million tons of cargo annually, ensuring year-round transport to the Caucasus, Central Asia, and the Caspian region.
Bektenov emphasized that the development of maritime infrastructure remains one of the priorities of the Government of Kazakhstan. He noted that dredging works at the Kyryk port were completed in 2025, and similar works at the Aktau port are expected by the end of the current year. This will allow the ports to accommodate fully loaded vessels, increase throughput capacity, and create conditions for further expansion of port infrastructure.
Elzhas Otynshiev, Chairman of the Board of Kazakhstan Temir Zholy, reported that the combined capacity of the Aktau and Kyryk ports is about 22 million tons per year. He also added that the volume of container transit along the Trans-Caspian route through Kazakh ports has increased threefold between 2022 and 2025.
The first stage of the container hub has already been commissioned at the Aktau port, with an annual capacity of 140,000 TEU. After the completion of the second stage in the period 2027–2028, its capacity will increase to 240,000 TEU. Furthermore, six container ships have been ordered to support the development of maritime transport.
The parties also discussed measures to improve the efficiency of transporting goods between Kazakhstan and Uzbekistan. It was noted that the volume of Uzbek cargo processed through the Aktau and Kyryk ports has grown by more than 60% in 2025 due to favorable tariff conditions and the development of railway and port infrastructure.
Following the negotiations, the prime ministers instructed the national railway companies, Kazakhstan Temir Zholy and Uzbekistan Temir Yullari, to prepare a specific plan for further increasing freight volumes along the Trans-Caspian International Transport Route.
Uzbekistan's Minister of Transport, Ilhom Makhamov, stated in an interview with the channel Uzbekistan 24 TV that the operator of the new toll highway connecting Tashkent and Samarkand will only be appointed after construction is fully completed.
According to the minister, the implementation of this project will proceed in two stages. The first stage will be handled by the Chinese company China Overseas Engineering Construction (COVEC), which will be responsible for building and completing the highway. After the completion of the work, authorities plan to engage a separate partner for operating the road as a toll route.
Makhamov specified that after the new highway opens, drivers will retain the option to choose between the existing free road and the new toll route. It is expected that the travel time between Tashkent and Samarkand via the new route will be reduced from approximately five and a half hours to two hours.
Furthermore, the minister announced that after the Tashkent-Samarkand project is finished, Uzbekistan intends to build additional toll roads. These include the Tashkent-Bostanliq, Tashkent-Fergana, and Tashkent-Andijan routes. Reconstruction of existing roads and construction of new highways in several regions are also planned with the support of international financial institutions.
According to Makhamov, over the last ten years, funding for the road sector has increased eightfold compared to the previous twenty-seven years. He added that the new roads are being built using updated construction norms and standards developed jointly with partners from Turkey and the United States.
Sherzod Boltayev, head of the Roads Committee Department, noted that the new 282-kilometer highway will be equipped with services along the route, including vehicle maintenance stations. It will also feature an intelligent transport system that will promptly inform drivers about road incidents and other factors affecting traffic safety.
The highway will start near Tashkent International Airport, providing direct access to Gulistan, Jizzakh, and Samarkand. It is expected that at least 50% of the materials used in the project will be produced domestically. Construction of the six-lane toll highway, estimated to cost approximately 2.2 billion US dollars, began on July 22, 2026, with an opening scheduled for 2030. The project includes the construction of 92 bridges, 28 overpasses, and 60 tunnel passages.
