South Africa

Insurance sector leaders in South Africa are hopeful the country will not be too deeply impacted by the deepening debt crisis in Europe, with many policy writers expressing cautious optimism as the new year gets underway. The implementation of EU financial norms and a national health insurance scheme could prompt some changes in the sector in 2012.

South Africa has unveiled a blueprint for economic recovery, with increased funding to support industry, job creation and a much-needed boost for infrastructure, although marginal rises in inflation and exogenous instability may hamper the ability of the government to provide any immediate palliatives.

South Africa’s construction sector appears to have been one of the big winners from the recently-released budget plan, following the ministry of finance’s announcement of a massive increase in spending on infrastructure and housing, although the industry will still need to overcome shortages of both human resources and materials as well as concerns over the government’s timely execution of capital projects.

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.