Africa remains a key investment hub despite global turbulence

DESPITE geopolitical and economic uncertainty across the globe caused by US President Donald Trump and his vacillating position on trade tariffs, among other decisions with far-reaching ramifications, Africa is still an attractive investment destination.

- NICOLA MAWSON

Andrew Bahlmann, CE of corporate and advisory at Deal leaders International, explained that, given the potential headwinds from rising US nationalism under a second Trump administration, South Africa's deal flow presents a complex picture.

"From a global perspective, South Africa has historically been viewed by many international investors as a key entry point into the broader sub-Saharan African market," said Bahlmann.

This, Bahlmann said, was due to the country’s relatively developed infrastructure, sophisticated financial sector and established legal frameworks, which have often made it a more familiar and less risky initial investment destination.

"While specific deals might be influenced by current political nuances, the strategic importance of South Africa as a gateway to a significant growth region could continue to underpin M&A activity, particularly for investors with a long-term African strategy," said Bahlmann.