South Africa

Investment rates among black South Africans on the Johannesburg Stock Exchange (JSE) have held steady over the past 12 months, despite market fluctuations and uncertainty over the local and global economy. Burgeoning pension and trust fund investments could also see increasing participation rates in South Africa’s black capital markets in coming years.

South Africa’s print media is going through some difficult times, with a number of titles struggling with declining circulation, lower revenue and the looming possibility of stricter regulation. However, the sector does continue to hold encouraging potential for growth, particularly for weekly print outlets.

Having benefitted from the surge in arrivals and a massive profile boost from last year’s World Cup, South Africa’s tourism industry is now facing a slightly more challenging environment. However, a shift in policy and more targeted promotions aimed at domestic travellers may soon get the industry moving again.

While its long-term potential may remain strong, particularly with a broadly positive macroeconomic outlook, the short-term future of South Africa’s property market is looking slightly more arduous. The country’s retail segment is still rising incrementally, but the commercial and residential components of the sector are likely to see muted activity and weak prices for some time to come.

The launch of the Gautrain – South Africa’s new high-speed train service – may be grabbing headlines, but the $3.8bn project could soon be overshadowed by even larger developments aimed at upgrading and expanding the country’s less prestigious but vital freight network.

While South Africa’s mining sector is currently benefitting handsomely from high commodity prices and increasing production, strikes and a debate over nationalism threaten to slow growth ahead.