First time in over 10 years that South Africa is looking good

Sygnia is optimistic about the future direction of South Africa but has flagged some risks facing the country.

Speaking in the group’s annual results for the year ended 30 September 2024, CEO Magda Wierzycka said that Sygnia enters a new financial year excited about the nation’s future – a first in over a decade.

“For the first time in over a decade, we enter the new financial year excited about South Africa’s future. Despite many challenges, the new government, representative of our rainbow nation, has an opportunity to revive the country’s economic and global standing,” said Wierzycka.

“Against that background, we are also excited about Sygnia and its future prospects.”

She added that several improvements have boosted sentiment in the country, such as the formation of the Government of National Unity (GNU) and the end of load shedding.

“It is unfortunate, that the GNU still includes members of the “rogue’s gallery” that engineered State Capture, but this cabal is now a shadow of its former self. It will take some time for the ANC to
get used to the new reality that country policy and party ideology are no longer the same thing.”

“It can no longer make unilateral decisions that ignore optics, such as siding with Russia or its
unequivocal support for NHI in its current form.”

She added that the end of load shedding is anticipated to have a positive effect on various sectors, such as mining and small businesses. It should also bring back tourists and foreign investors.

She added that although the Reserve Bank and regulators are making progress in getting South Africa off the grey list, the end is not yet in sight.

She added that given South Africa’s relatively small size on the global stage, our economy is tied to major markets, such as the US and China.

“A decade ago, when growth and demand for commodities boosted our economy, an alignment
with China made economic sense. As it continues to struggle with economic recovery, however, the benefits are less tangible,” said Wierzycka.

“The election of Donald Trump as the next President of the United States poses a significant challenge for South Africa, and it is time to choose our allies carefully. We are squarely in the original BRICS camp – aligned with China and Russia and “neutral” with Iran.

“As we know from his last administration, Trump has little time for Africa generally, and he will have no time for South Africa. Although suspending South Africa from the benefits of the African Growth and Opportunity Act is largely insignificant, it tarnishes South Africa’s international standing – particularly when its bedfellow is grey-listing.

She added that while 2024 turned out to be a year of political renewal for South Africa, 2025 should see South Africans expect the unexpected following Trump’s re-election.

Business performance

During the year, Sygnia’s assets under management and administration increased by 10.01% to R350.1 billion as of 30 September 2024 (2023: R318.1 billion).

Revenue of R946.0 million (2023: R843.9 million) was up 12.1%, while profit after tax of R347.2 million (2023: R300.4 million), was up 15.6%.

Basic earnings and headline earnings per share increased by 15.1% to 229.1 cents (2023: 198.9 cents).

The group’s total dividend per share also increased by 3.3% to 217 cents per share (2023: 210 cents)

Read: International icon closing its doors in South Africa