South Africa’s economy is experiencing a revival, marked by a reduction in power cuts and the formation of a government of national unity led by the African National Congress and the Democratic Alliance.
This political stability, coupled with declining inflation and interest rates, has boosted consumer and business confidence. Sim Tshabalala, CEO of Standard Bank Group, notes increased spending on durable and non-durable goods, growing home loan applications, and rising investments from both commercial and corporate clients.
The renewed confidence is especially visible in sectors like energy, logistics, and telecommunications. Businesses are refurbishing factories, purchasing equipment, and expanding infrastructure, aided by improvements in the power situation. Companies are investing in telecommunications infrastructure, such as 5G, spectrum licenses, and fibre, further solidifying economic growth. Tshabalala acknowledges that 2024 was challenging due to high interest rates and foreign exchange pressures but is optimistic about a 2% growth projection for South Africa in 2025 and robust growth across sub-Saharan Africa.
Standard Bank is positioning itself as a critical player in Africa’s energy and infrastructure development. With 600 million Africans lacking electricity, the energy gap presents significant opportunities. The bank is also capitalizing on Africa’s rich deposits of critical minerals like copper, cobalt, and platinum, essential for the global energy transition. Tshabalala highlights the need for infrastructure to support mining and export activities, such as roads, railways, and ports. Through partnerships with global entities like DP World and Mota-Engil, Standard Bank is facilitating the financing and construction of essential infrastructure projects across Africa.
As South Africa chairs the G20 in 2025, the nation has a platform to advocate for themes of solidarity, equality, and sustainable investment. Tshabalala, chairing the B20 task force on infrastructure and finance, emphasizes priorities like reducing Africa’s cost of capital, financing green transitions, and increasing financial inclusion. He calls for reforms to multilateral financial systems to better support both middle- and low-income nations.
Looking ahead, Standard Bank is focusing on leveraging emerging technologies like artificial intelligence and quantum computing to enhance productivity, tackle cyber risks, and improve customer experiences, ensuring it remains competitive in a rapidly evolving global landscape.
Further Africa
