This blog is co-authored by Eric Geldenhuys, candidate attorney.

SARB’s Market Practitioners Group (MPG) has issued a request for proposals (RFP) to design the calculation and methodology for a forward-looking ZARONIA term rate. There is no commitment to launch. Publication will depend on a robust methodology and sufficient liquidity in ZAR derivatives markets. The MPG expects the selected administrator to begin publishing by 1 April 2026. This is a clear first step toward a Term ZARONIA

If established, Term ZARONIA will sit alongside daily compounded ZARONIA, giving South African markets a choice that mirrors the global pattern seen in USD markets with SOFR: an overnight risk-free rate for compounding, and a forward-looking term benchmark for eligible use cases. Given comparatively lower ZAR market volumes, any term rate may come with scoped use restrictions. The RFP aligns with international standards, emphasising IOSCO compliance, transparency, data integrity and strong governance.

The RFP sets out the following:

1. Vendors must calculate and publish daily forward‑looking ZARONIA term rates for 1‑ and 3‑month tenors. A 6‑month tenor (and potentially a 1‑year tenor) may be added if feasible given market liquidity.

2. Rates must be freely accessible to the public (with commercial data feeds permitted).

3. Proposals will be evaluated equally across technical, firm, public‑policy, and methodology criteria.

4. Any launch, targeted as early as 1 April 2026, remains contingent on sufficient ZAR derivatives liquidity.

Vendors are asked to evidence resilient methodologies, credible input waterfalls, anti-manipulation controls, and free public access to published rates, with commercial data offerings layered on top.

None of this guarantees a term rate. But it does reframe the conversation from “we can’t” to “prove we can, and we will.” It is needed to bring us into line with international standards. For corporates hedging cash flows, banks structuring loans, and investors seeking reference alignment, that prospect alone is worth paying attention to.

The RFP can be accessed here: Request For Proposal (RFP) – Vendor to publish forward-looking ZARONIA term rates