Artificial IntelligenceEtana Energy signs a R1.8 billion deal with GuarantCo and British International Investment to boost renewable energy in South AfricaAs the end of the year approaches, investors are looking back on an eventful 2024 and starting to prepare for the trends that are likely to emerge in 2025. The 2024 investment landscape has been defined by an uncertain macroeconomic environment, geopolitical conflict, and huge strides in technological developments.
Investors had to navigate shifting interest rates, inflationary pressures, the AI revolution, political uncertainties, and a heightened focus on environmental, social, and governance factors – albeit not always a positive focus. Looking back and understanding the key trends of 2024 will put investors in a stronger position to evaluate likely trends and the market impact into 2025.
After a period of aggressive rate hikes by central banks worldwide in 2022-2023, the trajectory of interest rates in 2024 has shown signs of stabilization in many economies. However, central banks remain vigilant as inflation, while moderating, continues to hover above long-term targets in some regions. Despite this, the US Federal Reserve started cutting rates with a jumbo 50bps rate cut in September this year.
Equity markets are showing resilience, with the technology sector contributing most to strong performance, although valuations remain sensitive to monetary policy changes. Real estate markets, traditionally sensitive to interest rates, are showing mixed signals, with commercial real estate facing headwinds while residential markets stabilize in regions with cooling inflation. South African Real Estate Investment Trusts have been a standout performer during 2024 with the overall SA REIT market up 32% over the past year.Artificial intelligence remains a transformative force in 2024, driving investment across sectors.