South Africa’s coalition government triggers wave of investment

The formation of South Africa’s business-friendly coalition government has triggered a wave of investment announcements and positive sentiment not seen in years, spurring hope that Africa’s biggest economy may finally be finding its footing after a lost decade-and-a-half.

Within days of the coalition agreement in early July, ArcelorMittal reversed a decision to shutter two steel plants that support 80 000 jobs. Soon after, Qatar Airways bought a stake in South African airline SA Airlink. A $70-million auto-parts facility to supply Toyota Motor, which just three years ago said it might leave the country, has since opened and Anglo American announced a $625-million iron-ore investment.