South Africa

South Africa’s retail sector has seen mixed fortunes in recent months with a slowdown in vehicle sales but more encouraging news in luxury goods.

Improved competitiveness and significant government support have strengthened South Africa’s claim to be the leading sub-Saharan tourism destination, though new visa regulations and fallout from anti-immigrant protests could affect its appeal in the short term. 

A decision expected later this year on a tender for the provision of a series of nuclear power stations in South Africa could provide a long-term solution to the country’s power shortfall. 

The arrival of a new budget airline in South Africa promises cheaper domestic fares for travellers, though the increased competition may put pressure on the low-cost carrier (LCC) segment given weak consumer spending. 

South Africa’s mining industry has long been one of the economy’s most visible drivers, but uncertainty over legislation and a difficult operating environment are taking their toll.

Lower oil prices and a rise in domestic demand could fuel a modest rebound for South Africa’s economy in 2015 after power supply and labour disruptions slowed growth last year.