South Africa ABS Market Outlook

the outlook for the south african abs market for the period 2018-2032 is generally positive. this is largely due to an overall improvement in macroeconomic conditions in the country, and the government's commitment to improving the financial markets. the recent credit ratings upgrade from s&p global ratings has served as a major confidence boost to the south african economy. this, coupled with a new commitment to financial market reforms from president cyril ramaphosa, suggests that investors will increasingly look to take advantage of opportunities in the abs market. in addition, the government's plan to launch a number of infrastructure projects over the next few years has also served as an incentive to obtain funding through the abs market. this is demonstrated by the fact that the government has been able to attract large-scale investors to the south african capital markets in the form of bond and equity investments. furthermore, there has been a move towards increased acc regulation in the south african abs market. in particular, the national treasury is committed to enforcing a minimum capital requirement for all abs providers. this will ensure that risk exposure is managed, and will limit the extent to which sovereign-backed securities can be used to fund large-scale investments. overall, the south african abs market looks attractively positioned for the years 2018-2032. there is a large amount of potential investment available, provided investors can identify suitable and sustainable opportunities. the recent credit rating upgrade, combined with the reforms being implemented by the government, will generate further confidence in the market, thus providing an even more attractive outlook for the abs market.