Increasing investment dynamics in South Africa

German companies expect reforms from the multy-party new government and increasingly favor the country as a business hub in sub-Saharan Africa.

German companies expect reforms from the new multi-party government.

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We have summarised these and other findings in the "German-Southern African Business Outlook 2025".

The most important results of the survey

77 per cent of the companies surveyed expect the economic environment in South Africa to improve as a result of the election results, but only 12 per cent expect significant improvements.
The top demands on the South African government: systematic fight against corruption and crime as well as modernisation of the dilapidated infrastructure.
For 44 per cent of companies, access to other markets in sub-Saharan Africa represents a decisive locational advantage for South Africa.
A third of companies expect positive effects from the African Free Trade Area of 55 African countries, which has been in existence since 2021.

The study also contains a compilation of relevant macroeconomic facts and details about the Southern Africa region. companies with business activities in South Africa and the Southern Africa region were surveyed as part of the study. A total of 98 companies from the 16 countries in the region took part. The questions focussed on the economic prospects of German companies in the region as well as their challenges and business opportunities.