South Africa’s rand has recently shown notable resilience, supported by a combination of global and domestic factors.
The rand has capitalised on the weaker US dollar due to trade‑policy uncertainty, mixed growth forecasts, and shifting Fed expectations.
Bianca Botes from Citadel Global explained that the local currency has supported renewed investor confidence, anchored by South Africa’s fiscal discipline and inflation management.
This is evidenced by South Africa’s 10‑year bond yield dipping below 10% for the first time since 2022 .
These yields reflect improved sentiment and signal potential renewed inflows into emerging markets. The improved strength of the rand is due to a combination of favourable macroeconomic factors.
These include a weaker dollar, ongoing global optimism in the markets, dovish interest rate expectations in other countries, and increased investments in emerging market assets.
As a result of these trends, the rand strengthened to approximately R17.70 to R17.90 per USD in early June, reaching levels not observed in several months.
However, analysts caution that while the current risk‑on environment is favourable, any fresh geopolitical shocks or domestic political turbulence, such as uncertainty around tariff policy or coalition dynamics, could quickly reverse these gains.
Given the rand’s volatility in the first half of 2025, South Africans might feel disheartened about international travel.
However, there are still destinations where the rand holds considerable strength, allowing for affordable exploration.
These countries, Thailand, Turkey, Mauritius, India, and Tanzania, offer favourable exchange rates and are renowned for their vibrant cultures, landscapes, and unique travel experiences.
While the currency exchange rate is crucial, the true measure of affordability lies in the buying power of your money, and these six countries stand out for their value..
The costs of food and travel in these countries were calculated using data from Numbeo, the world’s largest database of user-contributed data regarding cities and countries worldwide.
Below are the five countries great for South African travellers where the rand will be stronger in 2025, as outlined by Nedbank.
Note: These comparisons focus more on travel and touring rather than general living costs, and conversions were done on 19 June 2025.
Thailand
- R1 will buy you: 1.82 Thai baht
- Eating out at an inexpensive restaurant for one: R55.16 (฿100.31)
- Average taxi trip (per kilometre): R21.99 (฿39.99)
Thailand remains a favourite for South African travellers, offering everything from rich cultural experiences to a buzzing nightlife.
“Thailand is a popular travel spot for South Africans. The country is rich in history and diverse cultures while offering a vibrant nightlife,” said Nedbank, pointing to hotspots like Khaosan Road in Bangkok and Bangla Road in Phuket.
With its sunny weather, beaches, and island-hopping options, Thailand offers excellent value for money.
Turkey
- R1 will buy you: 2.19 Turkish lira
- Eating out at an inexpensive restaurant for one: R159 (₺347.07)
- Average taxi trip (per kilometre): R12.78 (₺27.93)
Turkey is another top pick. “From the majestic Hagia Sophia mosque to the ancient ruins of Ephesus, Turkey is a melting pot of diversity,” the bank said.
The country’s unique mix of Mediterranean, Middle Eastern, and Central Asian culinary influences also makes it a budget-friendly destination for food lovers.
Mauritius
- R1 will buy you: 2.53 Mauritian Rupee
- Eating out at an inexpensive restaurant for one: R118.47 (Rs 300.14)
- Average taxi trip (per kilometre): R59 (Rs 149.47)
Mauritius, though more exclusive, can still be a cost-effective choice with the right planning. “Mauritius is a great option for a remote island vacation that will leave you feeling relaxed and rejuvenated,” said Nedbank.
While a visa is required, it’s free for South Africans, and many holiday packages include flights, accommodation, and meals, which helps stretch the rand a little further.
India
- R1 will buy you: 4.79 Indian Rupees
- Eating out at an inexpensive restaurant for one: R45.79 (Rs 219.36)
- Average taxi trip (per kilometre): R5.21 (Rs 24.96)
India offers one of the richest cultural immersions at a remarkably low cost.
“If you’re keen to discover one of the world’s oldest civilisations, now a vibrant modern powerhouse, you’ll be glad to know that a visit to India won’t break the bank,” Nedbank noted.
Tanzania
- R1 will buy you: 146 Tanzanian shilling
“Relax on the white sands of tropical beaches, sample multiple cultures and rich foods packed with exotic spices, or get a close-up view of jaw-dropping herds of wildlife on their great annual migration across the Serengeti,” said Nedbank.
For those with more time and budget, climbing Mount Kilimanjaro is also an unforgettable (but more costly) experience.
*No Numbeo data on Tanzania.
Source: business Tech
