We collate the Investec Group’s considerable analytical resources to provide reports with a South African market perspective.
South Africa is a medium-sized economy with a gross domestic product of R3 trillion and a population of 50 million. While GDP per capital measurements place SA in the middle income category, the country's very high level of income inequality means a large percentage of the population lives in poverty. The manufacturing and finance sectors are the largest and the retail sector the greatest formal private sector employer.
The South Africa economy grew by 2.5% in 2012 in an environment of weak global growth, and is expected to expand by closer to 3.0% y/y this year. The relative economic stability the ANC has achieved since 1994 provides a sound base from which to attain employment creating growth of 5-6%, although recent escalations in labour unrest and resultant investor uncertainty have undermined SA’s potential growth trajectory. Greater unity in the ruling tripartite alliance is now needed to ensure SA achieves the aims of the National Development Plan (NDP), an economic framework for the country until 2030 that aims to eradicate poverty and reduce inequality and unemployment, the latter to single digits, via sustained, accelerated real growth that trebles the size of the economy.