There are emerging signs that South Africa’s structural reforms are slowly improving the country’s investment potential.
In her weekly newsletter titled 'Three good news signals, one unfinished task: unlocking investment', business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso highlights that the 0.5% GDP growth, Fitch ratings upgrade, and the Port of Durban’s recognition as the world most improved port by international financial organisation the World Bank all reflect successful structural reform efforts and point to a stabilising fiscal outlook following years of decline.
However, she also stresses that urgent criminal justice reform is critical to maintaining investor confidence, especially on the eve of the financial action task force (FATF) reevaluation, which is expected to conclude in October 2027.
Mavuso says that these positive signals have been reflected in the relatively good performance of the rand and the country’s investment markets, with both bonds and equities remaining largely unchanged despite the global turmoil driven by conflict in the Middle East.
She also notes the challenge of structural reforms taking time to shift investment decisions across the economy and says more momentum is required to keep improving the country’s investment outlook.
