TechInAfrica – The Rand Merchant Bank’s Bureau for Economic Research Business tells us that confidence in South Africa is at a five-year low. And yet many analysts look for—and occasionally find—silver linings in the clouds. Yes, there’s plenty of bad economic news to go around. But innovation scenes such as those in Johannesburg and Cape Town help investors stay optimistic.
Why is that?
While some investors worried about the state of the government and the quality of its leadership, others take the longer view. These investors live with the expectation that Africa’s growing middle class will become a strong consumer market.
But Brett Commaille, lead partner at AngelHub Ventures, lets the cat out of the bag, noting, “There’s a clear preference [among investors] for businesses that demonstrate their ability to sell in foreign markets and grow despite the tough economic conditions.”