Political uncertainty over South Africa’s 2024 election raises investor caution

As South Africa gears up for its most competitive election since 1994, global investors are closely monitoring the potential impact on the country's stocks in 2024. The looming political uncertainty, compounded by the possibility of the ruling African National Congress losing its majority, has raised concerns among investors. Analysts predict that a coalition with the Economic Freedom Fighters, advocating for nationalization, could spook markets. Meanwhile, South Africa faces additional challenges such as a 15-year-old power crisis and deteriorating infrastructure. Despite attractive valuations, investors remain cautious, favoring fixed income over equities until clearer political and economic signals emerge.

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South African Election Risk Clouds Outlook for Stocks in 2024

By Khuleko Siwele

Risks around an election expected to be the most competitive since South Africa became a democracy in 1994 cloud the outlook for its stocks next year.

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