E South Africa’s Equity Market On The Rise, Potential Challenges In 2019

South Africa has been doing very well in terms of financial and economic improvement in 2018. Both on an individual and institutional scale, the numbers have been growing and there is plenty of data to back it up. Most important aspects in terms of growth is the private equity market in South Africa. Over the course of 2018, it has been showing massive gains according to the RisCura Savca Private Equity Performance report.

This type of performance is reinforced by the general state of affairs in South Africa, in terms of personal finance and well-being. Although the country is going through a lot of economic and employment trouble as it is, most residents are still able to find a way out. According to regulated Forex brokers in South Africa, the influx of new customers from the region has been on a scale never seen before. It seems that the population has “given up” relying on the authorities to bring more jobs to the country.

Even senior analysts at RisCura are agreeing with the general population about having a “hands-on” approach to the whole economic situation. According to Gilbert Anyetei, the growth that South Africa was seeing in 2018, will not be the case in 2019 if the same problems continue to be prevalent. Problems such as weak investor confidence, high unemployment and overall supply limitations on essential commodities such as electricity and infrastructure.

However, despite the onslaught of potential setbacks, the private equity class has shown to be an extremely reliable asset class during hard economic times. Its increase in popularity and profitability is a testimony to that.

According to Savca’s CEO, Tanya van Lill, the last year was an extremely tough challenge for South Africa as a whole. The effectiveness of the private equity sector was something that pretty much saved a lot of citizens from financial ruin. What van Lill forgot to mention was the alternatives to income that South Africans have been finding. One example was already shown above, being financial markets. However, another new asset class has emerged through the newly digitalized world. Cryptocurrencies are becoming a standard asset to hold for a South African, according to a recent survey.

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