While global economic uncertainty isn’t traditionally good news for emerging markets, South Africa is currently considered a “safe haven”, especially among the BRIC nations.
“The rand is stable, South African inflation is lower than world inflation, and economic growth is resilient,” CEO of the Johannesburg Stock Exchange, Leila Fourie, told a recent GIBS Forum.
Speaking to Adrian Saville, GIBS professor of economics, finance and strategy, Fourie said that, on a relative basis, South Africa is looking really good. “We are geographically more remote from the unrest in Russia, and we’re the only emerging market country where our fiscal position has improved prior to the current crisis.”
South African Economic Outlook
Fourie was appointed CEO of the Johannesburg Stock Exchange in October 2019 and has been at the helm for almost three years. She has over 25 years of international experience, primarily in financial services, and has served on multiple boards and held senior roles in banking, capital markets and payments.
Fourie explained that South Africa is often seen as a proxy for emerging markets. The first quarter saw the country perform well on a relative basis, with significant inflows in the equity market.
“There's deep discontent and concern around China. But, from a relative perspective, and especially in comparison to the BRICS countries, South Africa looks very positive for the first time.”
However, she added: “We need to get a more positive and balanced rhetoric out about South Africa because on a relative basis, we are performing pretty decently.”
