South African Bonds Lure Investors With Top EM Returns

Foreign investors are flooding into South Africa’s government bond market to take advantage of one of the best emerging-market trades of recent years.

The bonds have drawn net inflows of 139 billion rand ($7.9 billion) in the 18 months through June, more than the previous four years combined, according to National Treasury data. The coalition government established after elections in 2024 has proved key to sentiment, winning over investors with plans to reform the economy and improve the state’s finances.