Rand Weakens to 16.53 Per Dollar as ANC Support Falls Near 32% in Municipal CountRand Weakens to 16.53 Per Dollar as ANC Support Falls Near 32% in Municipal Count
Key Highlights
- South Africa's rand traded at 16.5275 to the dollar on Friday morning, 0.3% weaker, as the municipal election count passed 72% of votes.
- The ANC held about 32% of counted votes, down from 46% in 2021, with the DA on about 24% and city administrations in question.
- Economists say the key question is whether the vote yields stable administrations in key cities, while a stronger dollar and bond yields add pressure.
South Africa's rand weakened 0.3% to 16.5275 per dollar on Friday as the count in the municipal elections passed 72% and showed the ruling African National Congress losing ground.
At 06:55 GMT the rand stood at 16.5275 to the dollar, which at about KSh 129.9 to the dollar values one rand at roughly KSh 7.86. With 72% of votes counted, the ANC had about 32%, down from 46% at the 2021 municipal elections, according to results published by the Electoral Commission of South Africa. The Democratic Alliance, the nearest rival, was on about 24%.
What the vote means for markets
Bureau for Economic Research chief economist Lisette IJssel de Schepper said the key economic issue is whether the elections lead to more stable administrations in key cities. Reports on the count project hung councils in Johannesburg and Tshwane, which would put coalition bargaining at the centre of decisions on municipal services and debt.
For investors, city governments matter because they run water, electricity distribution and rates collection for the country's largest urban economies. Unstable coalitions can delay budgets and contracts, which is why currency and bond traders watch council outcomes even though municipal elections do not change national policy.
Dollar strength adds to the pressure
The rand's slide was not only about the ballot. The dollar rose more than 0.3% against a basket of currencies, supported by safe-haven demand after a global selloff in artificial intelligence stocks. The benchmark 2035 government bond yield rose 4.5 basis points to 8.33% in early trade, leaving the bond marginally weaker.
The move comes after a week in which the rand had been firm. Mwenendo earlier reported on how hot US wholesale inflation pushed the rand down and raised African borrowing risks, a reminder that the currency responds to US rate expectations as much as to domestic politics.
As Mwenendo earlier reported, South African mining output fell 12.7% in August, leaving the economy exposed to any loss of investor confidence.
Final verified results are still to be announced, and coalition talks will follow once the party shares settle. Kenyan exporters and investors with South African exposure, including firms listed on both the Nairobi and Johannesburg exchanges, will be watching whether the rand holds near current levels once the outcome in the big metros is clear.
In Summary
- Who is losing ground?
- The ANC, on about 32% of counted votes against 46% in 2021; the DA is on about 24%.
- What happened to the rand?
- It weakened 0.3% to 16.5275 per dollar, roughly KSh 7.86 per rand.
- When was this?
- At 06:55 GMT on Friday 6 November 2026, with 72% of votes counted.
- Where does it matter most?
- South Africa's big cities, including Johannesburg and Tshwane, where hung councils are projected.
- Why did the rand slip?
- A firmer dollar after a global selloff in AI stocks, alongside uncertainty over city administrations.
- How did bonds react?
- The 2035 government bond yield rose 4.5 basis points to 8.33% in early trade.