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It\u2019s been nearly a decade of waning foreign interest in South African stocks, with outflows exceeding $50 billion in that time.<\/p>\n\n\n\n
Last year was the eighth year in a row that foreign investors dumped South African equities \u2014 a record-long streak \u2014 selling stocks worth $8.3 billion (R155 billion). <\/p>\n\n\n\n
That took the total since 2016 to $53 billion (R990 billion), based on data reported by exchange operator JSE.<\/p>\n\n\n\n
The past decade has been a poor one for emerging markets as a whole, with MSCI\u2019s benchmark index notching a gain of just over 3%. <\/p>\n\n\n\n
Yet the benchmark index in Johannesburg has done worse, losing almost 6% in dollar terms. <\/p>\n\n\n\n
The rand, meanwhile, has fallen 42% in this time, a contrast with other developing nations where currencies have generally outperformed stock markets.<\/p>\n\n\n\n
Foreign investors have been wary of South Africa following a slew of corruption scandals, an energy crisis linked to the debt-ridden Eskom Holdings utility and a meltdown at Transnet SOC, the state-run rail and ports operator, according to Ashish Chugh, portfolio manager at Loomis.<\/p>\n\n\n\n
Unemployment and high public debt are also challenges, especially an upcoming election that\u2019s expected to be the most competitive since South Africa became a democracy in 1994.<\/p>\n\n\n\n
\u201cThis is an election year for South Africa and we believe it will be a tight race. Investor sentiment could improve if the winning party introduces strong reforms and policies to address investor concerns,\u201d Chugh said.<\/p>\n\n\n\n<\/a><\/figure>\n\n\n\n
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