South Africa

A planned easing of visa restrictions has been welcomed by South Africa’s tourism industry, which is looking to boost lower arrival numbers and offset slowing domestic holiday travel. 

South Africa has a host of appealing competitive advantages. It remains the continent’s second-largest economy – benefitting from a large manufacturing base, more than $2.5trn worth of metal and mineral deposits, and one of the most robust financial sectors in the world – and also boasts strong investment and trade ties with a range of key emerging and advanced economies. 

While real estate investment trusts (REITs) are relative newcomers to the South African market, with the regime governing the investment vehicle first codified in 2013, they have outperformed other classes of assets in recent months.

Bucking the trend of the country’s subdued economy, South Africa’s banks have again posted solid earnings, as they continue to strengthen their position through improved risk management practices and robust capital adequacy levels. 

While power shortages remain one of a number of challenges South African manufacturers are facing in 2015, there is a silver lining: solid demand and efforts to trim costs and boost operational efficiencies are expected to shore up earnings in certain segments.

An increasing appetite for domestic content and a rising appreciation by foreign filmmakers of South Africa as a filming location should sustain growth in the country’s entertainment industry, with the sector’s expansion set to outpace that of the broader economy in the years ahead.