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GNU boosts confidence in the economy – Reyneke van Wyk
Positive outlook for investors in South Africa
The Government of National Unity (GNU), established in June 2024 in South Africa, has boosted business confidence and opened up new opportunities for investment in the region, according to Reyneke van Wyk, Head of Stonehage Fleming’s Investment Division in South Africa.
“While we expect it to face many challenges, we are really excited about the new GNU. We got onto the right track, just before the election. Now, coming off a low base, if they can deliver on getting more of the basics right and see more of the public and private sector investment, we are hopeful that South Africa can achieve fixed investment growth of around 4% in the near term,” he said, speaking at a Stonehage Fleming Family Conference hosted in Stellenbosch in January this year.
The strengthening of the rand – trading near R17 per U.S. dollar by late September 2024 – can also be seen as a vote of confidence in South Africa's growth prospects and the new administration’s ability to manage the economy, noted Reyneke.
“We think things can snowball nicely, with confidence translating into growth enabling capital expenditure that should entice foreign investors to come back into South Africa,” he said, adding that his team is primed to support any individual or family interested in taking advantage of the positive economic backdrop.
“Over the last 15 years, we’ve invested heavily in developing a team of the highest calibre, refining our offering in South Africa. Today, we are ideally positioned to look after our clients, both on and offshore. South Africa remains a key geographic area for our business. We continue to work hard to understand our clients better. Events like this are key to enabling us to discuss with and listen to the next generation and adjust our offering accordingly.”
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