By Jaco de Klerk – Director
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During December 2025 the South African Reserve Bank (“SARB”) released a statement confirming the discontinuance of publication of the Johannesburg Interbank Average Rate (“Jibar”), which has historically served as the primary interest rate benchmark for a wide range of commercial and financial transactions.
The SARB confirmed that the final publication of Jibar will be 31 December 2026, with the South African Rand Overnight Index Average (“ZARONIA”) being the identified replacement. This announcement follows several years of industry consultation and was widely anticipated, with the SARB signalling as early as 2022 that Jibar’s long-term viability was under review. The SARB has referenced elements such as structural weakness and a declining market as the main reasons for cessation of Jibar.
While the discontinuance of Jibar has been long anticipated, its implications for existing and future commercial transactions are significant as numerous commercial agreements currently reference Jibar as the applicable interest rate benchmark. Any agreement that purports to apply Jibar beyond 31 December 2026 will, absent appropriate fallback or amendment provisions, face uncertainty and potential enforceability challenges.
The SARB confirmed that it, together with the Financial Sector Conduct Authority and the Market Practitioners Group will continue to offer guidance and support to ensure a seamless transition from Jibar to ZARIONA. However, regulatory guidance alone will not address all commercial and legal risks.
Market participants are advised to proactively revisit their existing agreements to identify Jibar exposure. Where agreements are silent, ambiguous, or commercially unsuitable, amendments will likely be required to avoid disputes.
Failure to address these issues in advance may expose parties to uncertainty, renegotiation under pressure, or even litigation once Jibar ceases to exist. Conversely, early engagement allows parties to negotiate balanced amendments, align with evolving market standards, and preserve commercial relationships.