investing in South Africa Archives

South African assets may be cheap, but that’s not a good enough reason not to invest offshore

23Nov

By Africa BusinessNo Comments

South Africa News

South African assets may be cheap, but that’s not a good enough reason not to invest offshore

By Mart Marie de Jongh, Certified Financial Planner at GraySwan and Gregoire Theron, Chief Investment Officer The investment world’s fixation on global inflation and whether we are approaching the peak and heading towards a recession, has many investors sitting on cash, waiting for signals of a better market. Despite this, investing in South Africa presents a convincing opportunity. In the South African Bond market, investors can yield more than 4% above South African inflation, one of the highest real yields compared to other developed and emerging markets. This provides South African investors the opportunity to receive an income well above inflation with a lot of risks already priced into the asset class. South African equities and emerging market equities are also trading at very...

Why ecommerce matters for small businesses in SA

There has been a permanent change in the way that people shop and, in turn, the way that businesses need to operate. In the absence of brick-and-mortar stores being open during the lockdown, as well as a general fear of crowded malls when things were able to re-open, South Africa’s ecommerce sector exploded. According to Trevor Gosling, Co-founder and CEO of Lulalend – financing partner to South Africa’s small- to medium-enterprises (SMEs), he has seen a phenomenal growth in ecommerce businesses who have connected with them for SME financing. Between the period of October 2020 and February 2021, Lulalend saw an 86% increase in loans made to ecommerce businesses and online retailers in comparison to the same period between 2019 and 2020. “The loans were strongly linked to growth-related req...

High-Impact Entrepreneurs Raise 4x Capital Year-On-Year

Endeavor empowers entrepreneurs for business growth Despite prolonged global market uncertainty, Endeavor South Africa has reported significant growth in their portfolio of disruptive tech businesses. The local chapter of the global non-profit organisation, which supports high-impact entrepreneurs in emerging markets, reported collective raises of R2bn in 2020 alone amongst the portfolio of 29 businesses, compared to R1.3bn combined during 2018-2019. A number of these businesses delivered strong results, one of which achieved a 300% uptick in volume. Capital Markets Lead Antonia Bothner attributes this acceleration in capital raising due to the growth stage nature of these businesses and the strong underlying performance of the businesses in the tech or tech-enabled space. The portfolio is...