South African CEOs see ‘green shoots’ as economic mood improves

Sentiment about South Africa has improved since the formation of a coalition government but the nation needs to be cautious about complacency, according to chief executive officers at two of the nation’s biggest financial-services companies. While “the sentiment has changed,” not very much has altered for companies in their domestic operations, Sanlam CEO Paul Hanratty said at Bloomberg’s Future of Finance event in Johannesburg. “There are some tiny green shoots appearing that we need to nurture.” Since the African National Congress aligned with business-friendly parties after losing its outright majority in May 29 elections, South African markets have been on a tear. The rand has gained 5% to the dollar, local-currency bonds have outpaced all peers in an emerging-market index with returns of 24% in greenback terms, and the Johannesburg Stock Exchange has hit successive record highs, delivering a 15.7% return in dollar terms.