Investment opportunities in South Africa

With the eyes of the world firmly focused on South Africa, Barclays Stockbrokers, the UK's largest online execution-only stockbroker, takes a look at opportunities that exist in the Rainbow Nation.

For investors wanting direct investment exposure to the South African economy, one of the best ways is through the iShares MSCI South Africa (SRSA), an Exchange Traded Fund (ETF) designed to track the MSCI South Africa index.  Another option is to invest in UK companies with business interests in South Africa, such as Anglo American (AAL), Diamond Corp (DCP) and Xstrata (XTA).

Alternatively, investors could broaden their horizons and consider a fund that has a focus on emerging markets, including South Africa.  For example, Fidelity's Emerging Europe, Middle East and Africa fund has a wider geographical horizon, but still has over 38% investment exposure to South Africa.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers, comments: "The transformation of South Africa over the last 20 years has been incredible and many see their hosting of this year's tournament as a fitting recognition of this progress.  However, it is worth noting that the economic benefits of being the host country are a matter of some debate; while optimists see the event as a catalyst for further economic growth and prosperity, sceptics believe the wider economic impact is limited and will not influence the more fundamental issues the country faces.

"In the world of investments, just like football, there is often background noise - short-term market movements, rumours and conjecture are all difficult to ignore, but it is important to remain focussed.  If the fundamental reasons for making an investment remain solid, and investors find the case for South Africa compelling, then the noise should be ignored.

"Along with England's supporters, we at Barclays Stockbrokers will be following England's next steps in the tournament very closely following the hard fought victory against Slovenia. While fans will be hoping England triumph over Germany in the next round and progress through to the quarter finals, our clients continue to be able to enjoy online trading commission at the heavily discounted price of just £4.42. Compared to standard rates of between £6.95 and £12.95, the offer lasts for as long as England stays in the tournament."