South Africa’s Quiet Repair: Why Local Assets Still Deserve a Place in Portfolios

South Africa has delivered an unexpected story: steady improvement, improving asset performance, and attractive real yields.

SNIB notes that SA is experiencing:

• disinflation progress

• better-than-feared power availability

• improved policy signalling

The surprising headline: SA equities beat inflation for a decade

SNIB highlights that local equities have delivered:CPI + 7.6% per year over 10 years 

This is important because it challenges common investor beliefs that local markets cannot produce durable wealth.

Why SA cash and income look compelling

With inflation below 4% and potential for a 3% inflation target, SNIB views:

• local cash as attractive

• local income as compelling

In practical terms: this creates a rare environment where cash is not “dead money.”

Bonds and policy improvements

SA bonds have delivered significant returns, supported by:

• reduced perceived risk

• improved fiscal diligence

• lower inflation expectation

South Africa remains complex — but not uninvestable.

The key takeaway is: local assets still play a meaningful role, especially when paired with diversification and selective equity positioning.