Why is this change happening?
South Africa is moving from JIBAR to a new interest rate called ZARONIA.
JIBAR will no longer be published after 31 December 2026.
From 1 May 2026, no new contracts should use JIBAR.
ZARONIA will replace JIBAR as the main benchmark interest rate.
This change is part of a global shift towards using interest rates that are more transparent and based on real market activity.
Older benchmarks, like JIBAR, are based on estimates from banks rather than actual transactions. In some cases internationally, this led to misuse.
ZARONIA is different because it is based on real transactions, making it more reliable and trustworthy.
The goal of this change is to improve confidence in how interest rates are set, with the aim that the impact on customers remains fair and broadly unchanged.
Where this may impact you
This change may affect you if your investment or financial product uses JIBAR. The exact impact of the transition may vary depending on the specific product and terms applicable.
This includes cases where JIBAR is used directly, or indirectly as part of a benchmark, index, or mandate.
In some products, JIBAR does not set your return directly, but is used as part of a benchmark (for example, STeFI) that measures performance. These benchmarks and indices will be updated by their providers as the transition to ZARONIA takes place. The exact timing of these updates is still to be confirmed.
Importantly, these changes happen at the benchmark or index level, and do not directly change the terms of your investment product although updates may be required in some cases to reflect the new benchmark.
What is changing?
An important difference between JIBAR and ZARONIA is how interest is calculated.
JIBAR is set in advance for a future period, usually 3 months. This means you know the interest rate for that full period upfront.
ZARONIA, on the other hand, is an overnight rate. It is calculated each day based on actual transactions in the market.
To use ZARONIA for longer periods (like 3 months), the daily interest rates are added together over time (this is called compounding).
Will this change your returns?
The aim of this change is to be fair to customers.
Across the market, the transition is designed to be neutral, meaning it should not materially advantage or disadvantage you.
When moving from JIBAR to ZARONIA, industry-standard adjustments (where applicable) are made to help ensure that the outcome remains broadly comparable.
Do you need to take any action?
No immediate action is required from you.
We will contact you if any specific action, documentation, or consent is needed.
If you would like to check whether your investment is affected, please contact your financial adviser or your Sanlam representative.
What to expect next
JIBAR will no longer be published after 31 December 2026, and ZARONIA will become the official benchmark rate.
Over time:
New financial products and transactions will use ZARONIA;
Existing JIBAR-linked investments and contracts will typically continue until maturity or transition to ZARONIA using agreed market methods;
Benchmarks and indices such as STeFI will move away from JIBAR;
Industry standards and market practices will continue to develop to support a consistent and fair transition.
To help ensure fairness, industry-standard adjustment mechanisms may be applied, where applicable when moving from JIBAR to ZARONIA so that outcomes remain broadly comparable.
Many of these changes will happen behind the scenes, and we will manage the required updates to systems, products, and benchmarks.
Sanlam is closely monitoring guidance from the South African Reserve Bank (SARB) and will keep you informed of any developments that may affect you.
Where can you find more information?
If you have any questions, please contact your financial adviser or your Sanlam representative.
You can find more information through official industry updates from the South African Reserve Bank (SARB), including: