The investment case for South Africa is the best in over a decade, Valdene Reddy, the director of capital markets at the JSE, said yesterday ahead of the SA Tomorrow Conference to be held in New York, US, next week.
The JSE, alongside co-sponsors Standard Bank, Old Mutual, and UBS, is set to host the 11th annual SA Tomorrow Conference on October 28-29, before of the Medium-Term Budget Speech (MTBPS) next Wednesday, with the aim of showcasing South Africa’s potential as a viable investment destination.
“This year’s conference comes at an opportune time, when South Africa has started to outperform even global markets. From April to December, we’ve seen South Africa outshine key emerging markets like Brazil, Mexico, Saudi Arabia and India,” said Reddy in an interview with Business Report.
“Our normalised return has even surpassed the S&P 500, which sends a strong message to international investors about the opportunity South Africa presents.”
She said the MTBPS would feature in investment conversations as it is a critical communication point for understanding the direction of the country ahead of next year’s budget.
The conference will spotlight South Africa’s economic resilience and how recent reforms under the new Government of National Unity (GNU) are beginning to shape the country’s future.
The SA Tomorrow conference will not only feature South Africa’s top institutions, but also offer a platform for the country’s key government officials to engage directly with international investors. Among the notable participants will be the South African Reserve Bank Governor Lesetja Kganyago, the two deputy finance ministers, Minister of Electricity and Energy Kgosientsho Ramokgopa, and several leaders from key economic clusters within the presidency.
Reddy said, "We will showcase both the public and private sectors, with a strong delegation that includes representatives from key sectors like energy and infrastructure, alongside 20 of our top 60 issuers (listed companies). This allows us to present a comprehensive investment opportunity to offshore investors.“
A primary focus of the conference will be to demonstrate how structural reforms and policy advancements are driving South Africa’s economic recovery, particularly in critical areas such as energy and infrastructure.
Reddy acknowledged that some difficult questions are likely to arise: particularly concerning the sustainability of the country's economic recovery and the role of the GNU in delivering long-term growth.
“The hard questions will likely be on how long it will take for these positive developments to translate into tangible results like gross domestic product (GDP) growth,” Reddy said. “Investors will want to know whether the GNU can sustain this momentum and deliver on its promises.”
Investors will want to know whether the government can achieve higher GDP growth targets of 2% to 3%.
However, Reddy is optimistic that South Africa’s current trajectory, coupled with its improving fiscal position and infrastructure investments, will help mitigate these concerns.
“South Africa is in a unique position where, for the first time in over a decade, we’re seeing more upside sentiment than downside risk. The reforms are real, and they are being executed. The foundations are in place for growth, and we expect this momentum to continue,” Reddy added.
South Africa’s role within the BRICS alliance will also be a point of interest for international investors, particularly given the country’s balancing act between its Western partners and growing ties with other emerging markets. The country’s recent participation in BRICS and upcoming role in the G20 presidency position it as a pivotal player on the global stage.
Reddy said these should not overshadow the country’s broader investment potential.
“There will always be sensitivity around South Africa’s involvement in BRICS, particularly regarding Russia, but the world is more interconnected than ever. Trade dynamics span across regions and sectors, and South Africa remains a stable, liquid market with strong governance frameworks.”
Looking ahead, she said South Africa is well-positioned to continue attracting foreign direct investment, citing recent improvements in key economic metrics. A moderation in inflation, strengthening of the rand and attractive real returns in the bond market are all contributing to a more favourable investment climate.
BUSINESS REPORT