Investec reports strong lending surge as post-election optimism lifts economic prospects

Oluwatosin Racheal Alabi -

Key Points

  • Investec reports increased lending activity and global investor engagement following South Africa’s elections.
  • Eskom’s progress on energy stability boosts productivity and investor confidence.
  • Investec is growing its private client segment and expanding internationally with platforms in the UK, Switzerland, and a new office in Dubai.

Investec Group, the Anglo-South African international banking and wealth-management powerhouse led by Fani Titi, is experiencing a surge in lending activity, fueled by renewed optimism and economic vitality following South Africa’s May elections.

Speaking during Investec’s interim results presentation for the six months ending Sept. 30, CEO Cumesh Moodliar highlighted how an improved political and economic environment has paved the way for broader engagement domestically and internationally.

Post-election confidence drives investment momentum

Moodliar credited the establishment of the government of national unity as a pivotal moment for rebuilding trust among both investors and the public. In October, Deputy President Paul Mashatile and 18 government ministers traveled to London, showcasing a united and proactive governance vision.

“It wasn’t about individual party interests but a collective effort to run the country effectively,” Moodliar remarked, contrasting the positive reception of this delegation with prior years. During the trip, Investec facilitated meetings between South African officials and ten asset managers overseeing a combined nineteen trillion dollars in assets.

“This meeting simply wouldn’t have been possible three years ago,” Moodliar noted, emphasizing the global perception shift regarding South Africa’s potential.

Economic stability sets the stage for growth

The country’s economic environment has also seen significant improvements. With nearly three hundred days free from load-shedding, Eskom’s progress in stabilizing power generation has become a cornerstone of South Africa’s recovery.

“Eskom’s progress is critical for growth and productivity,” Moodliar said. He pointed to Investec’s projection of one-point-seven percent GDP growth for 2025, noting that the government’s pro-growth strategies could push this figure higher.

However, he urged caution against overconfidence, pointing to ongoing infrastructure issues, particularly in logistics such as ports and rail, which could hamper long-term growth. Moodliar also flagged global risks, including trade uncertainties tied to a potential Trump presidency and economic slowdowns in China, which remain critical concerns for South Africa’s commodity-dependent economy.

Private clients drive growth in investment opportunities

Renewed confidence has not only benefited corporate clients but also invigorated Investec’s private client segment. Moodliar reported an eight-percent year-on-year increase in private client growth, driven by expanded lending activity since July.

To meet rising demand, Investec is broadening its international services for high-net-worth individuals. Its platforms in the United Kingdom and Switzerland are gaining traction, while a new Dubai office caters to South African and UK expatriates in the Gulf region.

“South Africa is in a better place than it was before May,” Moodliar concluded. While challenges persist, Investec remains optimistic about fostering growth and stability both locally and globally.