Cape Town – South African billionaire and Remgro chairman Johann Rupert has warned that global economic uncertainty is likely to persist, urging the government to introduce faster policy decisions and address infrastructure challenges to restore investor confidence.
In his chairman’s statement in Remgro’s 2026 integrated annual report, Rupert said uncertainty was no longer a temporary feature of the global economy but something businesses and investors would have to navigate continuously.
According to Billionaires.Africa, Rupert identified geopolitical tensions, armed conflicts, inflation risks, rising government debt, volatile financial markets and growing protectionism among the major forces shaping the global economic environment.
He also highlighted the rapid advancement of technology and artificial intelligence, warning that these developments were creating both opportunities and challenges for businesses.
“These forces are not only creating new efficiencies and opportunities, but they also require careful judgment,” Rupert wrote.
He said political developments in major economies, including South Africa, would continue to influence investor confidence and determine policy direction.
Turning to South Africa’s economic outlook, Rupert acknowledged improvements in inflation, electricity supply and cooperation between government and the private sector.
Major obstacles
However, he warned that sluggish economic growth, high unemployment, inadequate infrastructure and slow policy implementation remained major obstacles to economic recovery.
He cautioned that without sustained economic growth, the country would struggle to address unemployment and its consequences for social stability.
“The resultant negative impacts on social cohesion have already been felt,” he said.
Rupert called for greater policy certainty, reliable infrastructure, regulatory efficiency, respect for the rule of law and quicker government decision-making to unlock the country’s investment potential.
Emphasising the importance of decisive leadership, he said: “A quick no is better than a delayed yes.”
His concerns come amid mounting pressure on global financial markets. A Reuters report published this week highlighted growing vulnerabilities linked to geopolitical conflicts, rising government debt, trade tensions and uncertainty surrounding massive investments in artificial intelligence.
The report noted that more than $2 trillion in market value had been wiped from the Nasdaq 100 in October as investors reassessed the returns expected from major technology companies’ AI investments.
Strong financial performance
Reuters also reported that global debt had exceeded $350 trillion, leaving governments with limited financial capacity to respond to another major economic crisis.
Rupert, however, maintained an optimistic long-term outlook for South Africa, pointing to its skilled workforce, diverse economy, sophisticated financial markets and natural resources as important investment advantages.
“Our country possesses exceptional human capital, diverse cultures, sophisticated financial markets and significant natural endowments, all of which combine to offer the prospect of compelling investment opportunity,” he said.
He described Remgro’s outlook as one of “realistic optimism”, citing the country’s resilience and entrepreneurial spirit.
His comments followed his keynote address at the 31st Commonwealth Agriculture Conference in Cape Town on November 3, where he highlighted the vulnerability of farmers to geopolitical developments, market fluctuations, weather conditions and transport disruptions.
Meanwhile, Remgro reported a strong financial performance for the year ended June 2026, with headline earnings increasing 42.3% to R11.14 billion.
The investment group, which holds interests in businesses including Mediclinic, Heineken Beverages, RCL Foods, OUTsurance and eMedia, also increased its ordinary dividend by 73% to 595 cents per share and declared an additional special dividend of 550 cents.
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Compiled by Betha Madhomu
