Sim Tshabalala, the CEO of Standard Bank, has said that many foreign investors are still biding their time before investing in South Africa.
Despite the renewed optimism and interest in South Africa following the formation of the Government of National Unity (GNU), many foreign investors have adopted a cautious “wait-and-see” approach to what is happening in the country.
Tshabalala said that investors were waiting to see if promised reforms would materialize, and pointed out the surge in optimism – Ramaphoria – when Cyril Ramaphosa became president in 2018.
“People burnt their fingers and they’re waiting to see greater economic activity,” said Tshabalala.
Tshabalala said that optimism was higher in South Africa than at any time since 1994, but this optimism would only be sustained if the government could deliver on promised structural reforms.