Research and consulting in South Africa
With its headquarters in South Africa, IOA has a deep familiarity with this country through a long history of consulting and research. IOA analysts have noted that the loss of South Africa’s status as Africa’s leading economy corresponds to a crisis in political leadership that has significantly impacted the economy. Symbolising avoidable crises is the electricity infrastructure that has been costly across all sectors of commerce and society. However, the diverse, large country remains the economic anchor of Southern Africa, with an unparalleled infrastructure, industrial capacity and talented human capital. Strikes and rioting resulting from a lack of services delivery are also rooted in the continuing high economic inequity found 30 years after the establishment of a democratic state.
A desirable destination for tourists, South Africa economically also possesses a strong services and entertainment sector, higher education system and agriculture. The country’s military and diplomatic resources make South Africa one of Africa’s most powerful leaders.
Key opportunities in South Africa:
- A strong agricultural sector sees consistently growing export volumes from fruits and vegetables to value-added products like wines and frozen foods
- IOA researchers have noted strong and stable tourist arrivals that are drawn by a well-developed network of game reserves, nature parks, resorts, beaches and other attractions
- Industry and financial services are thriving, enabled by a skilled, educated workforce
Key concerns/risks in South Africa:
- Government corruption and inefficiency have led to a crisis of confidence in governance and economic consequences like a weak national currency
- Crime, economic inequity and poverty are significant problems
- An energy crisis has resulted in power outages crippling business and industry and disrupting normal life for all citizens