Bloomberg | | Posted by Zarafshan Shiraz
South Africa is a standout among its global peers offering an unexpected advantage: affordability. That’s according to brokerage RMB Morgan Stanley.
The rand has weakened about 9% versus the dollar and euro, and some 12% against the British pound, over the last year. The depreciation, along with fairly subdued inflation in South Africa compared with abroad, means that relative prices for local goods and services on sale are cheaper than elsewhere.
“Consumers can drink nearly three cappuccinos in South Africa for the price of one in the US and could spend four nights in a Cape Town hotel for the price of only one in London,” said Mary Curtis, a strategist at the broker, and Andrea Masia, an economist.
“Looking at the bigger picture, low relative prices of…
