South Africa

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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.
Rising demand for both private and commercial vehicles should put South Africa’s automotive industry on course to post full-year growth, with a recent rally helping to compensate for flat sales at the beginning of 2014.
A slower-than-expected rollout of major state-backed capital works look likely to weigh on the performance of South Africa’s construction sector up to end-June, with first-half-year results expected to be comparatively modest.
After a challenging few years, South Africa’s tourism sector is bouncing back, benefitting from the country’s affordability as a destination and its position as a business centre.
After two years of strong growth, the residential market in South Africa is set to lead global housing price increases by some estimates, although the rise in property values is expected to be slower than in previous years.

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