South Africa Rectifies Course After Jacob Zuma

Last year was already promising, even with an embattled president leading the country: according to the United Nations Conference on Trade and Development, foreign investment increased by 43% in 2017, reaching $3.2 billion (ZAR 38.65 billion). Of course, there are still challenges aplenty: social problems (e.g., land distribution and crime rates); high levels of inequality; high unemployment; tight public finances; and political fragmentation, including in the ruling party itself (ANC). But South Africa has, at the same time, one of the highest GDPs in Africa, and its economy is probably the most industrialized and the best diversified. We are confident that this new era, with renewed investor confidence and much better political leadership, will bring about faster economic development, setting the country on a better course for the future.

This article was written by Innealta Capital, a participant in the ETF Strategist Channel.

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