SA pitches itself as Africa’s gateway amid global market turbulence

As the country prepares to host the sixth South African Investment Conference (SAIC) next week, Minister of Trade, Industry and Competition Parks Tau is upbeat about the potential economic gains, saying the gathering could help inject fresh momentum into the domestic economy.

Beyond the government optimism, a leading expert suggests that shifting global geopolitics, particularly tension linked to the Middle East, may unexpectedly tilt investor interest towards South Africa, positioning the country as a relatively stable and attractive destination for capital.

President Cyril Ramaphosa established SAIC in 2018, with a mandate to mobilise domestic and foreign investment at scale, translating that into jobs, growth and opportunities for citizens. The five-year drive has secured R1.56 trillion in pledges, surpassing the original target by 26%.

Tau said more than 31 countries representing international delegates were making their way to the country’s shores. 

“Their growing interest to participate in the sixth South Africa Investment Conference is an illustration that the world sees us as a gateway to Africa — the ideal place to invest and partner with a developing country that is shaping the world we live in.

“Our message today is clear: South Africa is open and ready — an investment destination of choice. Across our nine provinces and in multiple sectors of our economy, significant investment has already been mobilised and implemented. We will be showcasing this progress at the conference, province by province, sector by sector.”

The minister said the country’s national strategic landscape, underpinned by its growth and inclusion strategy and reform agenda, provided a coherent, compelling framework for investors who were serious about long-term returns in a high-potential emerging market.

History, he said, did not wait for perfect conditions. “The investments made today, in spite of global uncertainty, in spite of competing pressures, are the ones that will define the South Africa of tomorrow.”

Concurring with Tau, Peter Baur, an associate professor of economics at the University of Johannesburg, said wooing more investors into South Africa was “absolutely possible”  despite the political economy, with geopolitics and war in the Middle East.

“There is a great deal of global uncertainty within the markets, mostly initiated through the economic and business challenges brought on through the US trade policy,” said Baur. “The conflict in the Middle East has significantly impacted on the distribution and supply of crude and refined petroleum products, as can be seen on the effect on oil prices.”

Noting that economies considered robust were taking strain “under the shifting global power dynamics”, Baur said that placed many global markets under significant pressure, affecting investor confidence.

“Yet, investors continue to seek markets to distribute this risk — through portfolio performance and investment stability,” he said.

Despite the relatively low economic growth within the economy, the country offered robust financial market structures and a stable monetary and fiscal policy framework, he said.

“There is a significant potential for investment, including energy, agriculture, manufacturing and mining. From a consumer market perspective, the persistent high unemployment and poverty remain a concern.

“Additional investment into South Africa would significantly contribute towards stabilising and strengthening the country’s growth potential, especially if it would contribute towards

strengthening the South African trade dynamic,” said Baur.

On SA-US relations, Baur said those were not unique to South Africa. “Challenges between South Africa and the USA are virtually as challenging as those between the rest of the world and America.

“Trade policy initiated by the Trump administration has had a significant impact on

global uncertainty. “It is during such times that the emerging markets become a risk hedge, particularly driven through such uncertainty. Earlier this month, crude oil stood at about $87 per barrel, almost reaching $100 per barrel.”

Some analysts estimate that the price of oil could climb to more than $100 a barrel in

the near future, significantly affecting global inflation. “This has further spurred greater uncertainty, which can be measured proportionately to the global rise in gold prices, earlier this month coming close to the $5 300 per ounce.”

Boitumelo Mosako, the chief executive of the Development Bank of Southern Africa, echoed the optimism around the upcoming SAIC, describing it as a critical platform to galvanise economic momentum.

She said the gathering would bring together government, business and state-owned entities with concrete opportunities to unlock growth. 

“This should create the jobs that are required within our country, drive economic growth and increase gross capital formation,” she said, pointing to infrastructure development across transport, energy, digital systems, water, health and education as central pillars.

Mosako acknowledged the uncertainty posed by global geopolitics, including tension in the Middle East. She said, however, that South Africa’s structural strengths, particularly its deep capital markets, positioned it to weather external shocks. “It should not deter us from our aspiration of growing this economy and creating jobs,” she said.

Instead, Mosako said the key question was how global instability might affect the pace and scale of infrastructure roll-out and investment flows. South Africa’s coordinated approach — led by the president, cabinet and broader stakeholders — sent a strong signal of policy commitment to investors, she added.

She highlighted the country’s strategic role in regional integration, with reforms in energy, rail and water infrastructure opening significant investment opportunities. “This puts us in a much stronger position, extending beyond the region,” she said.

However, global investor sentiment remains cautious. According to a study by Erik R Peterson and Terry Toland of the Kearney Global Business Policy Council, emerging markets have slipped slightly in attractiveness. 

The 2025 Kearney FDI Confidence Index shows only six emerging markets in the main rankings, two fewer than last year, with Poland and Argentina dropping out of the top 25.

China tops the list, followed by the United Arab Emirates, Saudi Arabia, Brazil, India and Mexico. South Africa sits just outside the main index, alongside Poland and Argentina.

The report flags rising commodity prices and escalating geopolitical tension as key risks shaping investor behaviour. 

“Thirty-eight percent of surveyed investors see a rise in commodity prices as the most likely development over the next year, while 35% cite increasing geopolitical tension, up seven percentage points from last year,” the authors noted, underscoring growing concern about supply chain disruptions and global uncertainty.