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The South African insurance market stands as one of the most advanced in the world, with one of the highest premium-to-GDP ratios and a wide cross section of well-regulated and innovative insurers. Although the market is set to become more sophisticated with the introduction of new legislation, much of the country remains unbanked and either uninsured or underinsured. Financial inclusion is still limited, with basic policies like auto or property liability insurance only optional – a rarity in the developing world, both in Africa and beyond. This presents significant opportunities for local and regional players, as they look to develop more inclusive products that meet the needs of low-income customers. In addition to providing much-needed coverage, the segment is expected to unlock substantial growth potential for insurers in the years ahead. This chapter contains an interview with Thabo Dloti, CEO, Liberty Group.

South Africa’s capital markets are continuing to enjoy relatively healthy growth on the back of improved regulation and supervision. The authorities are working to strengthen the market's regulatory framework, particularly in terms of settlement cycles and systemic risk related to over-the-counter securities. Technical and regulatory improvements at the Johannesburg Stock Exchange (JSE) are continuing apace, with new products, better supervision and a renewed emphasis on cross-border activity at the forefront of market developments. Market players are working to capitalise on growing investor interest in Africa and establish South Africa as a regional epicentre for initial public offerings and derivatives trading. While the market will continue to be buffeted by international headwinds and a weaker global economy, the JSE is set to maintain its reputation as Africa’s soundest capital market. This chapter contains interviews with Donna Oosthuyse, Director of Capital Markets, Johannesburg Stock Exchange; and Stephen van Coller, Chief Executive of Corporate and Investment Banking, Barclays Africa.

While South Africa’s banking sector already ranks as one of the best regulated and well capitalised in the region, regulatory changes are set to bring further improvements to the industry’s soundness and stability, as well as the treatment of its customers. The sector does, however, continue to face headwinds. As expansion of the broader economy has slowed, loan growth for banks has also eased. High levels of consumer credit, ratings downgrades and the closure of a local bank have also raised concerns. Nonetheless, growth amongst South African banks is expected to accelerate in the medium term. The sector is also set to benefit from ongoing investment in compliance and regional expansion over the long run, though the industry’s pivot to Africa is also likely to shift risk profiles. This chapter contains interviews with Lesetja Kganyago, Governor, South African Reserve Bank; and Mike Brown, CEO, Nedbank.

South Africa’s economy has experienced relatively slow expansion in recent years, with GDP growth still short of the rates recorded prior to the global financial crisis of 2008-09. Like many of its emerging market peers, the country has been affected by falling commodity prices and the prospect of rising interest rates. However, South Africa continues to benefit from a series of comparative advantages, including its robust financial services industry and strong private sector. In addition to being Africa’s second-largest economy, it is the most globally integrated in terms of capital and trade flows, and is well placed to benefit from growth in Africa and the broader global economic recovery. This chapter contains interviews with Nhlanhla Nene, Minister of Finance; Rob Davies, Minister of Trade and Industry; and Bobby Godsell, Chairman, Business Leadership South Africa.

AB & David, OBG’s legal partner, provides a guide to Ghana’s legal framework and relevant statutes for investors. This section also includes a viewpoint from David Ofosu-Dorte, CEO, AB & David.