South Africa

Bankers have been quick to downplay weak results from one of South Africa’s largest providers of unsecured loans, saying the decline in profits at African Bank Investments Limited (ABIL) does not portend more wide-spread problems in the sector.

The looming roll-out of a massive new public health care programme in South Africa, along with several enabling reforms, looks set to provide a healthier future for the country’s citizens. However, financing the scheme to the fullest may be a challenge over the long term.

The local tourism industry is expanding far faster than the rest of the economy, with visitor numbers on the rise and investment levels increasing, though it still has to combat negative perceptions of cost and security that dampen South Africa’s popularity as a holiday destination.

Competition on call-pricing packages continues to be a major feature of the South African mobile market, although data services are taking on an increasingly significant role this year, one that is expected to grow in the short to medium term.

The local economy is struggling to overcome twin hurdles – an inflated unemployment rate that siphons off state funding for social services and a lack of skilled workers to fill the many positions that are currently vacant.

Education reforms are being seen as key in trying to ensure that economic growth embraces a reduction in South Africa’s disparity and unemployment. Poor schooling remains one of the weak links in the economy, despite government efforts to address the problem by allocating the largest share of funds to education in both this and last year’s budget.