Is South Africa’s economy taking a positive turn?
South Africa’s economy in 2024 looks bullish, as fund managers see only optimism on the horizon. Here is more information.
South Africa’s economy in 2024 looks bullish, as fund managers see only optimism on the horizon. According to Business Tech, South Africa’s economy in 2024 is showing great signs. Firstly, even through the trying winter months, Eskom’s load-shedding looks to be holding steady as we approach 100 days without disruption to the power supply. That’s a record number of days not seen since 2021! Secondly, a Bank of America’s fund manager survey shows nearly 60% of managers are feeling bullish about equities in South Africa.
With the African National Congress (ANC) unable to secure an outright majority in the 29 May election, it opted for a Government of National Unity. Initially, there was concern the ANC would team up with the ‘progressive’ MK and EFF parties to secure a two-thirds majority in the National Assembly. Mercifully, as far as South Africa’s economy in 2024 is concerned, it pivoted the other way towards the Democratic Alliance (DA), with eight other parties aligning to form a 70% majority.
SOUTH AFRICA’S ECONOMY IN 2024
In Cyril Ramaphosa’s weekly From the President’s Desk newsletter, he called for calm and considered politicking ahead of his Cabinet announcement. Reports suggest the DA is insisting on as many as ten key portfolios and John Steenhuisen to be elected as Deputy President. While sources suggest the ANC offered them just three and Premier Lesufi snubbed the party entirely in the Gauteng Cabinet.
Nevertheless, despite this minor wrangling, the outlook for South Africa’s economy in 2024 is looking brighter than ever before. More than 80% of surveyed fund managers say they’re likely to bring money back into South Africa from offshore funds. All told, this is a good thing …
WHAT DOES THIS MEAN?
According to the Business Tech report, fund managers are backing banks, software, mining, as well as food retailers. Similarly, South African assets have performed strongly since the formation of a Government of National Unity that excludes the MK and EFF. The Rand strengthened to below the R18.00 per US Dollar recently. Stocks have also surged on the JSE. Furthermore, there appears to be a positive outlook on inflation, with 76% of respondents expecting it to lower by next year.