Dr Roelof Botha

With the Middle East having provided a paradoxical meaning to the word "ceasefire" and the world's second most important maritime shipping route for oil and fuel remaining at under 10% of its normal operations, it is not surprising that the oil price continues to act like a yo-yo in a range above $80 per barrel.

During the last week of April and into the first week of May, the price of oil remained above $100 per barrel, providing ample evidence of the continued impasse between the US and Iran. Global energy prices remain hostage to very high levels due to the effective closure of the Strait of Hormuz, which has led to fears of higher inflation worldwide.

The war in the Middle East is exacting a heavy toll on all of the world’s key currencies, whilst also threatening to lead to higher inflation and, potentially, higher interest rates. Geopolitical tensions and economic shifts are impacting markets worldwide, and South Africa is no exception. Here’s what you need to know to stay informed and make smart decisions.

On Balance with Dr. Botha as he shares his monthly thoughts on what’s driving the South Africa’s economy. Geopolitical tensions and economic shifts are impacting markets worldwide, and South Africa is no exception. Here’s what you need to know to stay informed and make smart decisions.

South Africa's foreign policy approach continues to disappoint, as demonstrated by the recent debacle surrounding a joint naval operation by members of the Brics+ group, which included Iran. This country is regarded as the world’s foremost sponsor of terrorism and is regularly condemned by the United Nations and Western democracies for gross human rights violations.

In December, the Inclusive Society Institute published a research report on the damage inflicted on the South African economy by excessively restrictive monetary policy, which led to record-high interest rates and subsequent GDP growth barely above zero.