Purpose-led Economics

Navigating the South African economy

The continent’s most diverse economy is a destination for large amounts of domestic and foreign investment. At the same time, the economic situation in South Africa is often challenging. Recent years have seen growing risks associated with energy security, transport and logistics, as well as crime and corruption.

On a positive note, some of these issues turned a corner during 2023-2024 in a partnership between the government and private sector. Still, structural challenges like high unemployment, poverty and inequality makes for a sometimes difficult operating environment.

Despite these challenges, South Africa offers a large market opportunity: a population of more than 60 million people, a sophisticated financial system, well-established manufacturing sector, a century-long legacy of commodity exports, highly innovative companies, top quality universities, and some of the most beautiful tourist attractions in the world.

Alongside previously unimagined challenges, local businesses are also seeing new opportunities open up. However, as in many emerging markets, finding value and solutions in South Africa is now more challenging than ever. Understanding the local economic and political context is imperative in grasping the reshaped long-term opportunities that the country offers domestic and international investors.

South Africa is also still a competitive gateway into the rest of the continent. PwC has a wide network of experts across the continent who understand the intricacies of Africa’s economies. Many of the challenges seen in South Africa — and the solutions that we offer to our clients at the southern tip of the continent — are used to answer important questions elsewhere in Africa.