Economic growth and investment in South Africa is set to rebound following several years of economic and political decline, say economists in a new PwC report.
The country remains a promising investment destination with a bright future, and retained many strong fundamentals and positive factors for investment in spite of the above-mentioned declines. The country is certainly in a better place now than where it was when previous rating actions took place in late-2017, the report said.
“Our economists see a 75% probability of improved economic growth in South Africa over the next five years under the leadership of President Cyril Ramaphosa, compared to the preceding years,” PwC said.
PwC economist Christie Viljoen, said: “South Africa, like other emerging markets, has a critical need to attract foreign investment while at the same time driving economic transformation. At the time of writing this report, the most likely scenario is that President Ramaphosa is able to make the necessary changes and reforms to help economic growth accelerate to 3% by 2022.”
The report argues that the time is right for investing in South Africa, for both domestic and international investors, as president Ramaphosa takes over leadership of the party and government. There is a high probability that the South African economy will be in a much healthier position over the next five years compared to the start of 2018.
South Africa experienced a decline in economic and political conditions during 2014-2017, but was nonetheless able to hold onto some key strengths. The past three months have also seen dramatic changes in South Africa’s economic and political landscape with the election of Cyril Ramaphosa as leader of the ANC and president of South Africa.
The country’s citizens, foreign investors and financial markets have welcomed these changes, and stakeholders are at present focussing on a more positive outlook for South Africa’s economics and politics.
