The South African Reserve Bank (SARB) stated that the country’s financial system remains broadly resilient despite growing global uncertainty linked to the ongoing conflict in the Middle East.
In its latest half-yearly Financial Stability Review, the central bank noted that tighter global financial conditions and rising oil prices are creating new challenges for economies around the world, including South Africa. The review found that the country’s vulnerability to volatile capital flows has increased as foreign investors shift funds to perceived safe-haven assets.
SARB Governor Lesetja Kganyago said the latest developments highlight the importance of building resilience in an increasingly uncertain global environment.
“The world economy is in for a bumpy ride, taking South Africa along with it,” said Kganyago. “There isn’t much we can do to stop global shocks, but we can nurture resilience so the system survives shocks and keeps on working.”
He added that the current oil price shock is expected to place further pressure on inflation.
The warning comes as the World Bank projects global economic growth of just 2.5% this year, citing rising energy costs, trade disruptions and geopolitical tensions. The institution cautioned that an escalation of the conflict involving Iran could further weaken economic activity and financial stability, particularly in developing economies.
Growing Cybersecurity Concerns
The Reserve Bank also highlighted emerging risks linked to advances in artificial intelligence.
According to the review, increasingly sophisticated AI tools are making cyberattacks cheaper and easier to execute. SARB warned that attacks that once required highly specialised expertise can now be attempted at a fraction of the previous cost.
SARB official Herco Steyn said cyber threats have evolved significantly.
“Cyber risk has shifted from episodic and largely manageable events to continuous and compounding,” he said.
The bank stressed that strengthening cybersecurity and financial resilience will remain critical as global economic and technological risks continue to intensify.
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