PESTLE Insights: South Africa - Macroeconomic Outlook Report

PESTLE Insights: South Africa - Macroeconomic Outlook Report

Summary

Mining, manufacturing and utilities contributed 25.1% to the gross value added (GVA) in 2018, followed by financial intermediation, real estate and business activities (19.7%) and wholesale, retail and hotels activities (15%). In nominal terms, the three sectors are expected to grow by 6.0%, 5.2% and 6.3%, respectively, in 2019

Due to higher regional income inequality and uneven population distribution, Guateng, KwaZulu Natal and Western Cape account for 63.5% of total domestic product and 55% of the population, as per the latest available data.

Finance, insurance real estate and business services attracted most investment in 2017

The overall FTSE/JSE All Share (Johannesburg Stock Exchange) index has been exhibiting a downward trend over the last year. As of September 23, 2019, the FTSE/JSE index stood at 55,622.8, compared to 57,164.25 on September 21, 2018.

Scope

• South Africa's air and rail networks are the largest in the continent, and the roads are in good condition. The country’s ports provide a natural stopover for shipping to and from Europe, the Americas, Asia, Australasia and both coasts of Africa. However, as per World Bank's logistics performance index (LPI), transport and logistic infrastructure in South Africa declined in the last two years with a fall in rank from 20th in 2016 to 33rd in 2018.

Reasons to buy

• Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
• PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
• Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
• This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.