PSPF records E632m surplus in 3 months

The Public Service Pensions Fund (PSPF) has generated a surplus of E632 million revenue after tax in the last quarter.

This is according to the second quarter performance report for the ministry of public service that was tabled by the Minister of Public Service Mabulala Maseko in Parliament. The report is yet to be debated by Members of Parliament (MPs) this week.

According to the report, the generated surplus after tax is for the months of July to September. Based on a quarterly budget of approximately E493 million, this represents a favourable variance of E139 million, or 28.2%.

The result was supported by investment income and administration expenses performing better than their quarterly budget benchmarks, partly offset by lower revaluation gains and higher withholding tax expense.

According to the report, the country’s inflation remained low and stable during the quarter, which ended in June, averaging at approximately 2.6%, which reflected contained price pressures and a favourable inflation environment.

Headline inflation stood at 2.6% in June, remaining well within the Central Bank’s desired range and supporting macroeconomic stability. Prime lending rate remained unchanged at 10.25% throughout the quarter.

“The stable interest rate environment reflected subdued inflationary pressures and continued support for economic activity while maintaining price stability.

Government’s 2026/27 budget, presented in February, continued to support economic growth through investment in infrastructure, social services, private sector development and economic diversification initiatives,” said the ministry.

The ministry added that Lilangeni remained broadly stable during the quarter, supported by its peg to the South African Rand and a relatively stable monetary environment in the Common Monetary Area (CMA).

Global markets delivered strong performance during the quarter which ended on June 30, and were driven by resilient economic activity, robust corporate earnings and continued investment in artificial intelligence and digital infrastructure.

“Investor sentiment improved following the easing of geopolitical tensions in the Middle East, which reduced concerns over global energy supply disruptions and led to lower oil prices towards the end of the quarter. Meanwhile, the IMF projected global growth of 3.1% in 2026, highlighting the resilience of the global economy despite ongoing geopolitical uncertainties,” said the report.

The South African markets remained resilient during the quarter which ended on June 30.