South Africa Sees Investment Surge After Business-Friendly Government Takes Power

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South Africa,Investment,Economy

The formation of a business-friendly coalition government in South Africa has triggered a wave of investment announcements and positive sentiment, signaling a potential turning point for the nation's economy after years of stagnation.

The formation of the government of national unity has spurred significant investment and positive sentiment, reversing years of economic stagnation and corruption.

Within days of the coalition agreement in early July, ArcelorMittal reversed a decision to shutter two steel plants that support 80 000 jobs. Soon after, Qatar Airways bought a stake in South African airline Airlink. A $70 million auto-parts facility to supply Toyota, which just three years ago said it might leave the country, has since opened and Anglo American announced a $625 million iron-ore investment.

"We are in a significantly better space," said Cumesh Moodliar, CEO of Investec South Africa. The country has a chance to become"more economically inclusive and potentially better placed to seize some of the opportunities," he said. Business leaders expect the coalition government — stocked with opposition members in the cabinet — to perform better because of increased competition and as a chastened ANC will need successes to bolster waning support.

Pohl is receiving more inquiries from companies seeking to invest, but"the economy still needs to deliver, we need stronger GDP growth," she said.

 

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