The Johannesburg Interbank Average Rate (JIBAR) has been the most widely used interest rate benchmark in the South African market. The South African Reserve Bank (SARB) estimates that, as of June 30, 2025, approximately R2.5 trillion in assets, R1.66 trillion in liabilities, and R38.9 trillion in derivatives JIBAR-linked exposures remain outstanding.
The highly publicized irregularities relating to the production of interbank offered rates (IBORs) in 2012 prompted a global regulatory response to reform major interest rate benchmarks in favor of overnight reference rates (ONRRs) that are near risk-free.
The SARB embarked on a reference rate transition journey in 2018. In 2019, the SARB formed the Market Practitioners Group (MPG) to manage the process of adoption and transition to a new overnight interest rate, the South African Rand Overnight Index Average (ZARONIA).
SARB’s approach leverages the International Swaps and Derivatives Association (ISDA) methodology, widely recognized for its effectiveness in derivative contracts. ISDA has provided the MPG with support and included the JIBAR fallback methodology in the “April 2025 Benchmark Module to the ISDA 2021 Fallbacks Protocol”, with ZARONIA as the replacement rate, and created a JIBAR fallback protocol. On April 8, 2025, Bloomberg Index Services Limited began publishing official ISDA IBOR Fallbacks for the JIBAR.
This transition affects the South African rand bond, loan, and derivative markets. The formal announcement of the cessation of JIBAR was made on December 3, 2025. Key dates were announced:
- The MPG confirmed that all JIBAR tenors will either cease to be provided by any administrator or will no longer be representative immediately after December 31, 2026.
- The next key milestone is “No New JIBAR” after March 31, 2026. This means after this date (March 31, 2026), no new JIBAR-linked contracts may be issued.
The New Development Bank (NDB) had previously established the LIBOR Transition Working Group which is now conducting the preparation and implementation of JIBAR transition in different working streams, such as lending, funding, legal, information technology, client outreaching and accounting. The NDB is closely monitoring market development and proactively engaging with our borrowers for a smooth and successful transition from JIBAR.
The NDB is also collaborating with other multilateral development banks, South Africa regulatory authorities and major financial market players to track industry developments and adopts best practices.
As JIBAR is phased out for cash products as well as derivatives, NDB has decided to replace the JIBAR with ZARONIA in all its loan products in line with the regulatory recommendations and market standards.
Please refer to FREQUENTLY ASKED QUESTIONS for details. If you have any further questions, please contact the NDB at LIBOR-Working-Group@ndb.int.
JIBAR Transition FAQs
Read on our FAQs below to learn more about the JIBAR transition and how NDB can support you.
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