South African Investors Face 'Perfect Storm' as Eskom Hikes Tariffs
South African investors are grappling with a perfect storm of rising costs, fiscal uncertainty, and a volatile rand. The upcoming Financial Action Task Force (FAFT) greylist review and uncertainty around the African Growth and Opportunity Act's (AGOA) renewal are heightening the need for compliant offshore strategies.
Eskom's recent April 2025 tariff hikes have exacerbated the situation, increasing operating and living costs. Despite this, GDP growth is forecast at a modest 1.2% for 2025. Delays in logistics reform and pending tax changes, coupled with global trade pressures, are major concerns for investors.
July's interest rate cut and easing inflation have provided a brief window to reassess investment portfolios. In light of these challenges, resilience, not survival, is the key for households, corporates, and high-net-worth individuals to safeguard their wealth. To this end, the Outbound Investment Summit is set to arrive in South Africa, promising global insights and strategies for wealth resilience.
With GDP growth projected at 1.2% for 2025 and the 'perfect storm' of challenges, South African investors are urged to explore compliant offshore strategies. The upcoming Outbound Investment Summit offers a platform to discuss and adopt resilient investment strategies, crucial for navigating the current economic landscape.
