South Africa

The Johannesburg Stock Exchange (JSE) enjoyed a good year in 2013, with its growth far outpacing that of the overall South African economy. However, with capital flows to emerging markets exhibiting some volatility in recent weeks, and domestic challenges such as continued labour disputes a possibility, 2014 may see more modest performance, although potential IPOs may give it a welcome nudge.

With slow but steady growth in 2013, South Africa saw comparatively reasonable performance last year, although there remains a sense that the resource-rich country is operating below its considerable potential.

With electricity demand still straining supply, South Africa’s state-owned utility, Eskom, is looking to invest in new generation facilities, rationalise consumption and diversify its energy mix.

Although they benefit from a market with one of the continent’s highest levels of per capita purchasing power, retailers in South Africa have seen limited growth over the third quarter, due in part to rising levels of personal debt and an unspectacular performance in the broader economy.

An overhaul of South Africa’s financial regulations, already considered some of the most robust worldwide, is likely to result in a shake up for the insurance sector. While the new system will strengthen oversight and boost transparency, it is also expected to push up the cost of compliance, which in turn could lead to industry consolidation.

Change is afoot in the South African media industry, with two major acquisitions under way, and players increasingly looking to digital platforms. The country has one of the largest and freest media markets on the continent, but as in numerous other economies, print outlets have had to deal with slowing circulation and a rapidly changing online landscape.