Still good to invest in SA despite issues

BARCLAYS Africa Group’s investment banking unit said South Africa was still offering investors opportunities even amid increased labour unrest, electricity shortages and a slowing economy. “There are some good companies investing into Africa,” Stephen van Coller, head of its investment banking unit, said yesterday. The country’s stock market adheres to good governance principles, it’s easy to move money in and out of South Africa and the use of international accounting standards made it “an easy investment platform” to access companies expanding in the continent, he said. Mobile telecoms operator MTN Group, Barclays Africa, retailer Shoprite and insurer Sanlam are some South African companies boosting profit by expanding across Africa. While they’re growing, the economy’s advance has slowed, hampered by inflation at the top end of the central bank’s target range, unemployment at more than 25 percent, strikes and electricity cuts caused by creaking infrastructure. Van Coller said: “Next year will be tough – there will still be power problems and unrest.” South Africa’s inflation rate was 5.9 percent in September and the economy is forecast to expand 1.4 percent this year, the slowest pace since a 2009 recession. “Owning a big chunk of Africa outside South Africa is important,” he said. Barclays shares rose 1.14 percent to close at R177.99 yesterday. – Bloomberg