Despite political uncertainty EM still offer opportunities - Report

Despite the recent political noise and economic challenges in emerging markets, investment opportunities continue to shine through, according to a recent report by Grant Thornton. The recent 11 billion rand deal with China has highlighted the potential for growth and development in South Africa, signaling to international investors that there are opportunities to be explored. Ian Scott, CEO of Grant Thornton Cape, emphasized the importance of looking past the current negativity and taking a longer term view when considering investment prospects in emerging economies. The deal with Beijing Automobile Organization is seen as a significant boost for employment and economic development in the region. Scott pointed out that while there may be challenges and uncertainties in the political and economic landscape, it is essential for countries like South Africa to proactively identify and promote sectors with potential for foreign investment. Comparing South Africa to other countries like Mexico, where despite facing similar issues such as crime and corruption, there has been a significant increase in foreign direct investment, South Africa still has room to improve in attracting international capital. Scott highlighted the need for more transparent and favorable terms to entice investors effectively. In terms of intra-African trade, Scott noted that despite being a continent with immense potential, there are still barriers that hinder the flow of investment between African nations. He highlighted the importance of removing trade barriers and improving tax regimes to facilitate greater economic cooperation within Africa. While the process may take time, Scott emphasized the need for continued efforts towards creating a more integrated and prosperous free trade zone across the continent. When discussing emerging markets, Scott highlighted countries like India, China, South America, and Eastern Europe as having significant investment opportunities due to their growing populations and economic potential. He emphasized the importance of conducting thorough research and forming partnerships with local experts to ensure long-term success in these markets. Scott cautioned against rushing into investments without proper evaluation, pointing out examples of companies that had to close down or scale back operations due to inadequate preparation. Despite challenges in certain African markets like Nigeria, Scott remains optimistic about South Africa's potential as a hub for investment, citing its infrastructure, banking system, and stock exchange as advantages for international investors. He advised companies looking to expand beyond South Africa to establish strategic partnerships, conduct thorough research, and commit to long-term engagement in order to navigate the complexities of emerging markets effectively. In conclusion, the message from Ian Scott is clear - while the road to success in emerging markets may be challenging, with the right approach, partnerships, and long-term commitment, there are significant investment opportunities waiting to be tapped into. By looking beyond the current uncertainties and focusing on the long-term potential, investors can navigate the complexities of emerging economies and contribute to sustainable growth and development.