Investing is all about spotting value where it looks as though there might not be any. Whether it's a traditionally weak economy or market development that others have missed, the best investments are always the ones that others overlook. Although South Africa might not be considered an investment underdog in global terms, South Africa could be set to offer some unexpected value in the coming months.
According to The Economist's 2018 African Business Outlook Survey, at least nine African countries are set to be among the 20 fastest growing economies in the world by the close of 2018.
However, in spite of this projected boom in the region, South Africa is currently performing below expectations. Although an expected growth rate of 1.4% is still growth, it's still relatively slow in comparison to the rest of the region's emerging players. Indeed, thanks to internal divisions in the African National Congress as well as regulatory uncertainty in vital areas, South Africa's economy isn't growing at a rapid rate.
Surely this means it's one of the poorer investment opportunities in the region? Not necessarily. As we've said, untapped value is the key to making solid long-term investments and something you can't overlook in this scenery is the fact South Africa is a lynchpin in the region. With companies such as Sappi and Barloworld established in South Africa, the country is essentially a springboard into the rest of Africa.
By this token, companies already in South Africa essentially have a direct line to some of the world's fastest growing economies. Keen investors will always look for growth potential at micro and macro levels and then try to find a common link between the two. In this instance, South Africa is the key that can unlock the African region through it's MINING, MINERALS & RESOURCES and that's why an acute understanding of MSN and its movements is crucial for any investor sizing up the region.