2 minutes to read by  RBC Emerging Markets Equity team, W.Hayes Oct 20, 2025

Our recent trip to Cape Town and Johannesburg brought home how South Africa is a country of striking contrasts, where natural beauty and the potential for growth sit alongside deep-rooted socioeconomic challenges.

Key takeaways:

• A complex political backdrop: the current multi-party Government of National Unity (GNU) is showing resilience, although reforms and improvements are very slow to materialise, and public patience is wearing thin.

• Innovation amongst challenges: domestic issues have left South Africa with poor economic growth, and unemployment sits at around 30%. On the bright side, however, companies with good management are seeking to improve, and operational excellence is key to surviving and thriving.

• Retail therapy in Cape Town: this innovation was evident in Cape Town’s shopping centres, where retailers are adapting to a tough market by targeting specific needs. Both budget-friendly and aspirational offerings seem to be thriving, whilst middle-of-the-road products are struggling.

• A hospital visit in Johannesburg: the complexities of life in South Africa firmly extend to healthcare, with debates around National Health Insurance continuing to rage on against the backdrop of a sorely under-resourced public system.

• Glimmers of hope: South Africa’s strong demographics and natural resources offer hope of a brighter future, but progress depends on better governance and execution at both a local and national level.

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