If it’s not painfully obvious yet, the latest “Where To Invest In Africa (WTIIA)” report by Rand Merchant Bank and Boundless World consultancy makes it unequivocally clear – “South Africa is economically stuck.”
According to the 2025/26 WTIIA study, “the country’s GDP size may be Africa’s largest, but GDP growth is likely to be the continent’s lowest for 2025 at around 1%”.
It’s also projected to be almost the lowest on average, with an expected growth rate of 1.5% until 2029.
The report states that “the government of national unity (GNU), formed after the May 2024 general elections, has struggled to act decisively on major issues, including rampant unemployment, transport infrastructure that starves many growth opportunities, and insufficient energy supply”.
Thankfully there is some good news.
“South Africa’s stock exchange has performed strongly of late. The JSE All Share Index increased by 14.7% in the first half of 2025, its best opening two quarters since 2006,” the report states.
“This was driven by a relatively small selection of shares, including thriving metals, such as gold and platinum.”
South Africa’s exit from the greylist of the Financial Action Task Force (see news item posted on October 27), also bodes well.
It’s predicted that it will bring about “a welcome mark of approval for capital allocators and business operators some time in 2025 or 2026”.
The WTIIA study emphasises that the 22 action items required for this by the Paris-based body after South Africa was first greylisted in February 2023, and which were required to be met by mid-2025, go some way towards vouchsafing fiscal prudence by National Treasury.
- Follow Freight News as we bring you more from the WTIIA report.
