Nedbank Private Wealth on what the future holds for SA’s investment markets

The last few years have been challenging for investors and financial advisors in South Africa, with a tough economic climate and the impact of COVID-19 leading to consistently low returns in the market. The announcement of COVID-19 vaccines has sparked hope and optimism in the investment community, but the question remains: What does the future hold for South Africa's investment markets? To shed light on this topic, Andrew MacKenzie, Head of Portfolio Management at Nedbank Private Wealth, joined CNBC Africa for an insightful interview. MacKenzie expressed cautious optimism about the potential impact of the vaccine announcement but noted that there is still a long way to go before the worst of COVID-19 is behind us. While the positive news is a step in the right direction, he highlighted the importance of closely monitoring other factors that could influence the market in South Africa. He acknowledged that it has been a challenging period for investors, especially for value investors like Nedbank Private Wealth, but the recent market activity has been encouraging. MacKenzie also discussed the potential for economic recovery in South Africa, emphasizing the need for effective implementation of the reconstruction and recovery plan. While there have been concerns about the feasibility of these plans in the past, MacKenzie expressed optimism about the current momentum and the willingness to drive economic reforms in the country. He praised the efforts of Finance Minister Tito Mboweni in navigating the financial challenges faced by South Africa and highlighted the importance of continued support for state-owned enterprises, infrastructure development, and land reform. MacKenzie highlighted the significance of long-term planning in the current economic landscape, pointing out potential risks such as inflation and currency fluctuations. He emphasized the importance of monitoring the Rand's performance against the US dollar and highlighted the positive momentum that the Rand has experienced. However, he also cautioned against potential risks such as political instability or further rating downgrades that could impact the currency's strength. Looking ahead to the next five years, MacKenzie identified a balance of risks and opportunities in the South African investment market. While inflation and currency fluctuations remain key risks to watch, he also highlighted the potential for positive developments in the economy, particularly in light of global factors such as the Biden administration and the development of COVID-19 vaccines. MacKenzie's outlook for the future of South Africa's investment markets is cautiously optimistic, with a focus on long-term planning and strategic decision-making to navigate the challenges and opportunities that lie ahead.