South Africa (ZAR, Rand) Economic & Currency Analysis

South Africa (ZAR, Rand) Currency FX Analysis

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South Africa SWOT Statistics

Strengths + Opportunities = 18

Threats + Weaknesses = 18

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Rand has great long term potential.

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The African country known as South Africa is located on the tip of the African continent. The first known settlers in that area were called the San people. Other African tribes speaking the Bantu language followed. The first incursion by the Europeans into South Africa was from the Dutch East India Company who settled the area in what was called The Cape of Good Hope in 1652 with a colony that was eventually to become known as Afrikaners or the Boers. They spoke Dutch and ruled the area as their personal country. The government of South Africa changed hands several times since the Dutch colony peopled the area with white Europeans. The British took control in 1815 and freed the black slaves. Many Afrikaners left South Africa and moved east o form what was called the Orange Free State. With the discovery of diamonds in 1867, many of these dissident white Dutch returned and the result was a series of wars for control of the diamond mines. The Dutch had established in South Africa what is known as apartheid. When South Africa won its independence from Britain, the black dissidents led by people like Nelson Mandela challenged the forced segregation. South Africa gave up its apartheid society and a predominately black South African government has ruled. The country has the highest incidence of AIDS and is filled with crime and corruption. The economic condition of South Africa is as turbulent as its racial combinations and battles. The country exports gold, diamonds and coal. The wealth of South African mines is not reflected in the health of its peoples as statistics are that 49 deaths occur for every 1000 births. The life expectancy of South Africans is a median age of 55 years.


Rand Currency Analysis Update

South Africa (ZAR) has a resource rich economy in Sub-Saharan Africa. South Africa's Fundamental Currency Analysis (short term investment): South Africa’s currency is undervalued with moderate investment flow potential, high purchase price potential, and interest rate parity potential. South Africa's Value Investor Survey (short term investment): South Africa’s economic environment is moderate. South Africa's Currency Trading Strategy: An undervalued currency, moderate investment flow potential and moderate business environment leads to a slightly positive outlook for South African investments.


Factors That Positively Affect The Rand


Factors That Negatively Affect The Rand

  • HIV AIDS The HIV, AIDS virus is a big challenge for any economy. South Africa faces an epidemic spread of the virus. South Africa is currently experiencing one of the most severe AIDS epidemics in the world....