2024-07-13 04:16:09 ET
Summary
- South Africa is perceived as corrupt and dangerous, but the country also has excellent demographics, strong geography, and a considerable existing capital base.
- SA's equity market is heavily discounted vs. other global markets as a result of poor economic performance, but as the political winds shift, this may change.
- We see the recent election result as a strong indication that the country is on the way to righting itself.
- As that process unfolds, we think SA equities appear very attractive relative to their potential upside.
- We rate EZA, the top South African ETF, a 'Strong Buy' as a result.
Alright, let's face it - South Africa doesn't have the best reputation at the moment.
Many currently view the largest African economy as corrupt , dangerous , and in a state of perpetual collapse , which are hardly the building blocks of profitable long-term investment.
Alarmist headlines and articles about problems with the power grid , government corruption , and resource mismanagement have plagued the country's international reputation, and things don't appear to be getting better in a hurry....
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For further details see:
The Investment Case For South Africa: EZA Is The Ultimate 'Buy Low' Opportunity