Ready, Set, Switch: Executing Your JIBAR Exit

The long‑awaited announcement regarding the transition from the Johannesburg Interbank Average Rate ("JIBAR") to the South African Rand Overnight Index Average ("ZARONIA") has now been made. On 3 December 2025, the South African Reserve Bank ("SARB") confirmed that JIBAR will be discontinued immediately after its final publication on 31 December 2026 (the "JIBAR Cessation Date"). This step aligns South Africa with comparable global transitions (i.e. the cessation of the London Interbank Offered Rate), with ZARONIA set to establish a more robust interest rate benchmark for the pricing of financial instruments denominated in South African Rand.

The SARB has placed the rationale for JIBAR's cessation firmly on the record. Structural weaknesses in the benchmark and the sustained decline in activity in the underlying market have been identified as vulnerabilities that cannot be addressed within a reasonable timeframe. ZARONIA, calculated from actual