South Africa

Although South Africa’s macroeconomic indicators remain soft, recent data shows that foreign investors are continuing to flow into the country as a public sector-backed infrastructure spending campaign is rolled out. 

Africa’s second-largest economy, South Africa, has been grappling with headwinds throughout early 2014, although it narrowly avoided slipping into a recession in the second quarter. The country’s long-term fundamentals remain fairly attractive but the new cabinet will have a tricky job stimulating growth over the remainder of the year.

Investments in South Africa’s rail services are set to pick up pace thanks to new orders in rolling stock and locomotives, with local service and materials suppliers expected to benefit from a swathe of new projects.

An unusually long running strike at South Africa’s platinum mines has finally come to an end, and while the effects of the five-month action will likely be felt by the industry for years to come as it tries to recoup losses, it may have helped potentially expand the scope of smaller mining firms in the sector.

Plans to increase the production and distribution of generic drugs in South Africa are gathering pace, paving the way for the government to push ahead with the phased rollout of its National Health Insurance (NHI) scheme.

President Jacob Zuma has announced a shake-up of the South African energy sector after signalling the government will push ahead with both nuclear energy generation and shale gas exploration, although revised electricity demand projections suggest consumption will nonetheless be slower than expected in the years until 2025.