Goldman Sachs Names South Africa the Top Emerging Market Destination for 2015 Investments


Goldman Sachs Names South Africa the Top Emerging Market Destination for 2015 Investments

The Annual Frontier & Emerging Markets Forum, an annual convention that brings together business leaders and companies to discuss the outlook for frontier and emerging markets, took place in April 2015 in Johannesburg. According to South Africa’s Engineering News, Colin Coleman, International Managing Director at Goldman Sachs, named South Africa the top emerging market destination for investments. He indicated it not only has deep capital markets, but shines compared to the shortage of other emerging market options.

“South Africa has two times market cap to GDP, which reflects the liquidity and sophistication of the Johannesburg Stock Exchange, which is a very favorable destination to fund managers,” Coleman said during his presentation.

With regards to other emerging markets, Brazil and Latin America were identified as unattractive investment destinations for the short term given each of their local conditions; Turkey was also regarded as unfavorable due to its current political environment and proximity to the Middle East; and Russia was essentially deemed incorrigible given its current political state.

In contrast, South Africa maintains solid and well-governed financial markets. “So, when we look at South Africa right now, it actually occupies a very interesting place in the world,” said Coleman. The 5% growth rate projection for the sub-Saharan population, coupled with the peaceful election in Nigeria, served to further advance South Africa as the emerging market leader at the forum.

Similarly, the Emerging Markets Private Equity Association (“EMPEA”) marks South Africa as a key emerging market investment destination. Indeed, their 2014 industry statistics report indicates the largest year-over-year gain was for sub-Saharan Africa, where private equity fund managers raised more than US $4 billion in 2014, marking the highest amount recorded since EMPEA began tracking fundraising statistics in 2006.

While the South African Treasury projects 2% economic growth for South Africa this year, Goldman Sachs indicated they were more bullish, expecting South Africa to grow by 2.3%. “The fact is South Africa should be a 3.5% growth rate because that is the country’s real base capacity,” explained Coleman.

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EHS Support is an environmental consulting firm with offices across the U.S. and internationally.   EHS Support is building presence and capability in South Africa with its joint venture partner, Pretoria-based Prime Africa Consultants.  The combined entity provides environmental and economic services including merger and acquisition due diligence, resource economics, market studies, remediation, upstream oil and gas (including shale gas development), health and safety, and environmental compliance, and is perfectly placed to assist companies seeking investment in Africa.

Prime Africa consultants will be in the United States in October and will be presenting market and economic analysis techniques for assessment of risks in acquisitions in Africa and other emerging markets at numerous forums. Prime Africa completes African market analysis for numerous multinationals and has conducted major economic and business risk analysis projects for private sector clients and investment banks for African projects. EHS Support and Prime Africa are available for an in-person meeting. For more information, please contact Kevin Simpson , or Jackie Crafford at or +27 82 319 2929.

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