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South African Balance of Payments

What this page covers

A current account deficit means the country spends more abroad than it earns there, and the gap has to be funded by foreign capital. For the rand, how that funding behaves matters more than the size of the deficit.

-1.5%current account
Surplustrade balance
Deficitprimary income
+3.7%the 2021 peak
The current account, as a share of GDP
YearCurrent accountTrade balanceContext
2026About -1.5%SurplusCommodity prices supportive
2025About -1.0%SurplusImproved terms of trade
2024About -1.4%SurplusModerate deficit
2022About -0.5%Large surplusCommodity boom
2021About +3.7%Record surplusCommodity prices and weak imports
2020About +2.0%SurplusImports collapsed in the pandemic
2019About -2.6%Small surplusTypical of the decade
2013About -5.8%DeficitThe widest of the modern era
2008About -5.5%DeficitBefore the crisis
What makes up the current account
ComponentTypical positionDriver
Trade in goodsSurplusMining exports against oil and machinery imports
ServicesDeficitTransport and travel
Primary incomeLarge deficitDividends paid to foreign shareholders
Secondary incomeDeficitSACU transfers to neighbouring states
Why it matters to the rand
SituationEffect on the rand
Deficit funded by direct investmentStable, that capital is sticky
Deficit funded by portfolio flowsFragile, that capital leaves quickly
SurplusSupportive
Terms of trade improvingSupportive
Deficit widening with weak fundingThe classic emerging market vulnerability

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How these figures work

The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. The primary income deficit is structural: South Africa's largest companies have substantial foreign shareholding, and the dividends they pay out leave the country every year.

A deficit is not itself a problem. What matters is whether it is funded by long-term investment or by portfolio flows that can reverse in a week.

★ What this means in practice

The 2021 surplus was exceptional, driven by a commodity price spike and imports suppressed by the pandemic. It is not a level to expect again.

✕ Common mistakes

  • The primary income deficit is structural: South Africa's largest compani. The primary income deficit is structural: South Africa's largest companies have substantial foreign shareholding, and the dividends they pay out leave the country every year.
  • A deficit is not itself a problem. A deficit is not itself a problem. What matters is whether it is funded by long-term investment or by portfolio flows that can reverse in a week.
  • The 2021 surplus was exceptional, driven by a commodity price spike and . The 2021 surplus was exceptional, driven by a commodity price spike and imports suppressed by the pandemic. It is not a level to expect again.
  • Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.

Notes on reading these figures

  • The primary income deficit is structural: South Africa's largest companies have substantial foreign shareholding, and the dividends they pay out leave the country every year.
  • A deficit is not itself a problem. What matters is whether it is funded by long-term investment or by portfolio flows that can reverse in a week.
  • The 2021 surplus was exceptional, driven by a commodity price spike and imports suppressed by the pandemic. It is not a level to expect again.

To put these figures to work, The Rand Exchange Rate History runs the arithmetic on your own numbers; SARB Foreign Exchange Reserves covers the same ground in ordinary language; GDP Growth History goes into the detail this table only summarises; Why is the rand weak? is the related figure worth reading beside it; and Mining and the rand covers what this page leaves out.

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Terms used on this page

Definitions
Current account
Trade, services, income and transfers with the rest of the world.
Trade balance
Exports less imports of goods.
Primary income
Dividends, interest and profits flowing in and out.
Terms of trade
Export prices relative to import prices.
Portfolio flows
Foreign buying of local bonds and shares, which can reverse quickly.

Frequently asked questions

What is the current account?

Trade in goods and services plus income and transfers with the rest of the world. A deficit means the country spends more abroad than it earns there.

Is a deficit bad?

Not by itself. What matters is whether it is funded by long-term direct investment or by portfolio flows that can reverse in a week.

Why is the primary income account always in deficit?

South Africa's largest companies have substantial foreign shareholding, and the dividends they pay leave the country each year.

What happened in 2021?

A record surplus, driven by a commodity price spike and imports suppressed by the pandemic. It is not a level to expect again.

How does it affect the rand?

A deficit funded by portfolio flows is the classic emerging market vulnerability, because that capital can leave quickly.

Who publishes it?

The Reserve Bank, in the quarterly bulletin.