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ATLANTA, GA (10 DECEMBER 2015)  -- South Africa has risen in prominence globally as a corporate location, owing partly to having hosted the 2010 FIFA World Cup, but economic uncertainty remains an obstacle to even greater corporate real estate growth, according to a new report from �־������ٷ���� Global, South Africa: Uncertain Times Ahead.

South Africa is an economic powerhouse, with a population of more than 53 million, and has earned its nickname due to its diversity of cultures and languages. It is, however, only the second largest African economy (following Nigeria), and faces several economic challenges:

• GDP per capita has dropped sharply from $7,300 USD in 2010, to $6,400 USD in 2014, according to the World Bank
• The South African Rand (ZAR) has fallen in value compared to the U.S. Dollar
• Inclusive growth will need to become a higher priority, as will reducing unemployment
• Infrastructure issues, such a weakening power grid, will need to be addressed
• Exports: reducing the country’s dependence on export of natural resources will enable South Africa to more easily absorb fluctuations in the international commodities markets

From a corporate real estate perspective, “South Africa’s long-standing connections to and participation in global markets traditionally have made the country an entry point for many looking to enter the African market. More often than not, South Africa is still the regional base for many multinational corporations,�� according to the report.

Still, total CRE transaction values in 2014 dipped over 68% from those of 2013. And the total number of investment transactions in the office sector halved from 2013 to 2014.

As do many countries, South Africa faces a challenge in attracting talent so that the corporate real estate profession can grow and thrive.

The report concludes that long-term prospects are positive.

“South Africa remains a vital conduit for regional and international business, and the country has established itself as a significant piece of the global economic system. These conditions alone qualify the country as a viable target for continued expansion, and if the current government can address the issues hindering economic growth in the short-term, South Africa will very likely rebound back along its positive trajectory as a rapidly developing market,�� said Jean-Damien Lury, with Source8, and a collaborator on the report.

About �־������ٷ���� Global

�־������ٷ���� Global is the world’s leading professional association for corporate real estate (CRE) executives with strategic responsibility for the real property used by multinational corporations for their own operations. �־������ٷ���� Global’s more than 9,500 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit www.corenetglobal.org.