20 Jan Why Investors Are Getting More Constructive on South Africa – and What It Means for Founders

Inside Innovation City, we spend a lot of time with founders making real decisions:
Where to build.
Where to hire.
Where to keep capital, or move it.

As we head into 2026, one question keeps surfacing in conversations across our community:
Does South Africa still make sense as a place to stay invested while you build?

To explore this from an investment lens, we asked Tshego Ramatlo, Investment Manager at Investec Wealth & Investment, to share how she’s reading the current landscape, and why South Africa continues to feature in long-term thinking, despite the noise.

A global reset founders can’t ignore

According to Tshego, 2025 wasn’t defined by short-term market swings. It was about deeper, longer-term change.

Around the world, countries started looking inward. They focused on securing energy, key minerals, supply chains, skills, and critical technologies. Money is moving more carefully as a result, favouring stability and resilience over rapid expansion. At the same time, competition in AI and advanced technology ramped up, especially between the US and China, while Europe increased defence spending as global uncertainty grew.

For founders, this shift matters. Capital is becoming more selective. Investors are backing businesses with real assets, clear advantages, and the ability to execute – not just big growth stories.

Despite global tension, inflation stayed mostly under control and economic growth held up better than expected. The US Federal Reserve cut interest rates, which began easing global financial conditions. At the same time, investors moved into traditional safe-haven assets like gold, silver and platinum; a signal that caution still dominates. For founders, this means capital is available, but selective: investors are backing businesses that can demonstrate resilience, real traction, and the ability to operate through uncertainty.

South Africa: Sentiment lagging signals

Locally, Tshego describes 2025 as a year where the data began to improve before confidence followed.

Many founders and operators were understandably sceptical. There were real questions about whether the new political setup could deliver stable electricity, better governance, and a simpler environment to run and grow a business. What people wanted wasn’t big promises or growth headlines – it was proof of delivery, accountability, and real reform.

While confidence stayed cautious, the data quietly moved in a better direction. Inflation remained under control, interest rates were cut, and the rand strengthened over the year, moving from R18.87 to R16.57 against the US dollar.

Markets picked this up before sentiment did.

The JSE performed strongly in both rand and dollar terms, led by gold and platinum companies, with telecoms and tech also contributing. As Tshego puts it, this is often how progress shows up in South Africa: not loudly or all at once, but first in the numbers, before people are ready to believe it!

Why long-term investors are still backing us

When we asked Tshego why South Africa continues to feature in long-term investment strategies (even with clear risks), she pointed to six factors founders should be paying attention to:

• Fiscal discipline is holding. Treasury remains committed to consolidation, and SARS’ R18 billion revenue overshoot points to improved state capacity where it matters.
• External confidence is improving. South Africa’s sovereign credit upgrade and removal from the FATF grey list meaningfully shift how global capital views risk.
• Policy continuity matters. The GNU’s ability to hold supports reform momentum, a critical ingredient for business planning and capital allocation.
• Valuations remain compelling. South African assets still offer a margin of safety relative to many global markets.
• Infrastructure is incrementally improving. Sustained periods without load shedding and better port and rail efficiency directly impact founders’ operating reality.
• Structural reform is no longer theoretical. Operation Vulindlela Phase 1 has delivered confidence, with Phase 2, if accelerated, expected to support stronger growth through the decade.

A clear-eyed view for builders

Tshego is realistic about what hasn’t changed.

Geopolitical shocks, political risk, slow reform execution, weak growth and persistently high unemployment remain real constraints. Progress is uneven, and momentum requires discipline.

But investment decisions, much like company-building, are rarely about perfect conditions. They’re about trajectory, credibility, and relative opportunity.

From an investor’s perspective, South Africa still offers all three.

Join the conversation: What’s going right in South Africa

This is exactly the conversation we’re continuing at Innovation City as we kick off 2026!

On 5 February 2026, we’re hosting Campbell Parry, Investment Analyst at Investec Wealth & Investment, for a focused keynote designed for founders, operators and investors who want signal, not slogans.

In What’s Going Right in SA (A 2026 Kickoff Keynote), Campbell will unpack five data-backed signals showing where economic and market momentum is actually forming, and why global investors are paying attention now.

Event details
📍 Innovation City Cape Town
🕠 17:30–19:00
📅 5 February 2026

Who it’s for
Tech founders, operators, investors and ecosystem leaders building or backing businesses in South Africa.

What you’ll leave with

• Clear economic and market signals that matter for founders
• Where momentum is forming beneath the headlines
• How global capital is currently framing South Africa

A concise, grounded keynote to start the year with perspective, not noise.

Seats are limited. Get your ticket here.