The country is a major gold producer as well as being as one of the top two producers of palladium and platinum in the world. South African miners have been enjoying improved margins due to a surge in prices on raw materials like iron ore and platinum while the rand currency depreciated against the dollar.
Many still believe South Africa’s economy has its work cut out for it as the government tackles high unemployment and high debt. Credit agency Fitch recently downgraded South Africa to just one notch above speculative-grade status and stated that the dismissal of Nene had “raised more negative than positive questions.”
“ANC has been in the driver’s seat since coming to power in 1994, and President Jacob Zuma and his administration have been hounded by corruption investigations, and this was an anti-Zuma vote, experts quoted by the FT say. South Africa’s socioeconomic divisions are wide and the economy is nearing recession,” according to Barron’s.
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iShares MSCI South Africa ETF