Rediscovering The South African Equity Market

2025-03-27 11:12:00 ET

Summary

• Despite economic setbacks during the Great Recession and Covid-19, South Africa is poised to almost double its growth in 2025 and 2026.
• Financial reforms, lower rates and inflation are expected to foster an environment of stronger consumer spending.
• The economy boasts one of Africa’s most industrialised, technologically advanced, and diversified, but electricity disruptions and shortages have historically held back growth. However, the government has renewed impetus to improve legacy infrastructure, and look for new opportunities in renewable energy solutions.
• The country is well positioned to benefit from new technologies and its vast mineral wealth as nations look to integrate AI across their economies and diversify their supply chains from China.
• South African mining performance is returning into favour. Technology has become one of the larger industries, having grown rapidly from zero to about 15% in just a few years.

By Sandrine Soubeyran, Director, Global Investment Research

Overview

South Africa has set a rigorous agenda of reforms and opportunities, as it puts “solidarity, equality and sustainability” at the centre of its G20 Presidency in 2025. With a focus on improving the lives of South Africans and growing the economy, the coalition government of Cyril Ramaphosa has ambitious plans to harness its mineral wealth, transition to renewable energy and revamp its financial structure. Improving economic prospects should be highly supportive of financial markets, providing a strong platform for renewed investor interests....

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