Yesterday, I attended the Trade and Investment Seminar, part of the Atlanta Phambili initiative, alongside US Ambassador to South Africa, Reuben Brigety. The event showcased the growing collaboration between South Africa and the city of Atlanta, a relationship that holds much promise for trade and investment. The positive sentiment in the room was palpable, highlighting the strengthening investment case for South Africa.
We all know the importance of deepening trade ties with America, especially with the wild card that is Donald Trump soon to be back at the helm. Trump's tariffs are a worry, as is his potential treatment of Africa. South Africa must tread carefully, balancing its North-South and South-South relationships while keeping an eye on economic benefits.
As Africa's population continues to grow, contrasting with the West's decline, the continent’s consumer market offers massive potential. South Africa, despite its challenges, remains an attractive gateway to this opportunity.
In August, the 9th Annual Meeting of the New Development Bank in Cape Town was a notable success, reflecting the benefits of South Africa’s involvement in BRICS. Looking ahead to 2025, South Africa will host the Group of Twenty, drawing global attention. This could be a game-changer, but it’s imperative that the significant investment in this event translates into tangible benefits—deals that spur investment, create jobs, and uplift people on the ground.
Reflecting on Resilience
Reflecting on the past few years, it’s clear that South Africa has endured incredible hardships. From the dark days of apartheid to the hope of Tata Madiba’s Rainbow Nation, and from the scars of State Capture to the crushing impact of load shedding, the country has faced one challenge after another.
Investor Warren Buffett’s words ring true: “Only when the tide goes out do you discover who's been swimming naked.” The Zondo Commission exposed the devastating extent of State Capture, leaving the nation grappling with self-inflicted wounds. Load shedding compounded this, eroding consumer and business confidence and pushing the economy to the brink.
Yet, in 2024, the tide began to turn. Load shedding ended on March 26, marking the start of a long journey to recovery. The ANC, recognising its political decline, allowed Eskom’s leadership to operate with the autonomy needed to stabilise the power utility.
The return of consistent electricity is a monumental milestone. It accelerated our footprint into renewables and alternative energy solutions, which is positive. The relief that South Africans can now enjoy at the flick of a light switch—reliable baseload power—cannot be understated.
Eskom’s recovery isn’t the only success story. South African Airways, despite facing recent strikes, has emerged from business rescue, expanding its fleet and routes. Logistics is the next kid on the block to get its house in order. This critical sector is showing signs of improvement, with hopes for significant progress by the end of 2025.
A Resilient Nation
At one point, such progress seemed impossible. Many sought opportunities abroad, but others stayed the course, fighting to rebuild the country. South Africans have proven time and time again to be resilient, rising from the ashes like a phoenix.
Make no mistake: the challenges remain immense, and the list of issues is long. Just today, my domestic worker shared her story of how her family was held up at gunpoint last night, with their electronics stolen. This, while her husband has been waiting over 90 days for payment from a state-owned entity, which is an absolute disgrace!
Despite these massive problems, a better economy translates to better financial tidings for all. There’s renewed energy within the business community to push forward. The frantic pace of activity in December (which veers into headless chicken worker moments) reflects this determination, as businesses work to showcase their achievements and set the stage for 2025.
Anchor Capital’s recent media event pointed out that South Africa’s companies are more optimistic after the end of load shedding and the GNU, but this needs to translate into stronger balance sheets.
And while people are piling into shares on the JSE, foreign investment still needs a bit of convincing. Thus, we have work to do to not only strive but thrive. This was highlighted in October at the Think Investing Convention 2024, where 10X Investments’ Christopher Eddy, the head of Multi-Asset Funds, presented a bullish case for South African equities:
“The long-term base case has South African equities delivering a real return of close to 7%,” he said at the time.
Signs of Renewal
As we look to 2025, the Chinese Zodiac Year of the Snake symbolises wisdom, transformation, and growth. While superstition may not drive outcomes, it’s a fitting metaphor for South Africa’s journey.
As we close 2024, Business Report wishes all our readers prosperity and all business leaders success in carrying the baton of hope and perseverance. Now, more than ever, South Africa needs optimism and effort to achieve the unimaginable. Positivity attracts positivity, and we cannot afford to squander this moment.
With hard work, determination, and the right leadership, South Africans can do it.
Tiger Brands CEO Tjaart Kruger said this week: “A year ago, we set out to restore the roar to Tiger Brands and we have made important gains since. We are very clear that a growing, and roaring Tiger Brands delivers sustainable value for all our stakeholders, including our employees, our customers, consumers, business partners and communities.”
I absolutely love this energy. We can all take lessons from that statement. Unleash the roar and make it happen!
I guess in South African terms it should be expressed by our national animal - the Springbok. May it leap into 2025 with all four hooves fleet of foot to hit the ground running.
Philippa Larkin is the executive editor of Business Report.
BUSINESS REPORT