Sydney Mhlarhi, Director at Tamela
As South Africa and the broader African continent enter a period marked by political transitions, shifting global capital flows and renewed investor interest, Tamela, a leading boutique investment, corporate finance advisory and fund management firm, believes the next 12 months present a mix of opportunity and risk across investment and capital markets.
Pending elections fuel conversations; decision-making
Looking ahead to 2026, Tamela Managing Director, Sydney Mhlarhi, says the South African political landscape, particularly the local government elections expected later in the year, is already shaping boardroom discussions and investment decision-making. “While election cycles often introduce short-term uncertainty, they can also accelerate progress. They tend to unlock project momentum. Projects that have been delayed or are sitting in the pipeline often receive renewed attention, creating opportunities for infrastructure development, capital deployment and economic stimulus,” he notes.
Infrastructure projects gain momentum
Over the past year, Tamela has worked closely with clients that are advancing infrastructure pipeline projects, including initiatives linked to rail and ports infrastructure. In partnership with entrepreneurs, communities and strategic investors, several of these projects have achieved key milestones, with further announcements expected later in the year. These initiatives are expected to contribute meaningfully to job creation and economic growth, regulatory and bureaucratic processes allowing. While political dynamics at municipal level are in flux, Tamela views the current environment with cautious optimism. “South Africa has lived with political uncertainty for nearly a decade. Despite the shifting landscape, the overall trajectory has been positive, and we believe it will continue to move in the right direction,” suggests Mhlarhi.
Positive market sentiment fuels listings and growth
From a capital markets perspective, sentiment remains optimistic. The JSE delivered one of its strongest performances in many years in 2025, supporting improved valuations and renewed listing activity. Tamela expects this momentum to continue, particularly in the first half of the year, attracting private companies seeking to capitalise on favourable market conditions through listings and capital raises. “Stronger equity market performance typically drives confidence, and higher valuations encourage companies to pursue growth strategies, including public listings, acquisitions and expansion. This creates demand across corporate finance advisory, JSE sponsor services and fund management,” says Mhlarhi.
The firm also expects buoyant market conditions to support increased investment activity, as investors and executives adopt a more confident stance on capital allocation. “A positive political and financial climate reduces perceived risk, enabling decision-makers to redeploy capital from defensive positions into growth opportunities,” notes Mhlarhi.
Tamela aims to deepen global investor focus on Africa
Strategically, Tamela is building on the momentum of 2025, including its role in the landmark Barloworld transaction, a complex, multi-jurisdictional transaction valued at approximately US$1.4 billion. The transaction has been instrumental in strengthening the firm’s international relationships and sharpening its focus on cross-border opportunities. “On the back of transactions such as Barloworld, there is growing recognition among Middle Eastern and European investors that Africa represents one of the most compelling long-term growth opportunities globally,” adds Mhlarhi.
Africa already holds more than 30% of the world’s known mineral resources, yet its production share remains significantly lower, reflecting underinvestment, infrastructure constraints and governance challenges. Tamela believes these gaps represent long-term opportunity, particularly as global capital increasingly seeks exposure to the continent. Investor engagement during recent engagements in Saudi Arabia and the UAE reinforced this view. “The feedback was clear: for many global investors, Africa is not a short-term trade, but a multiple-decade growth story,” says Mhlarhi.
Staying the course through market volatility
While geopolitical tensions and global volatility, particularly in developed markets, continue to present near-term risks, Tamela’s long-term investment philosophy remains unchanged. The firm focuses on medium- to long-term value creation rather than short-term market movements. “As an investment manager and advisor, our role is not to react to daily volatility, but to position our clients and portfolios for sustainable growth in an evolving environment,” concludes Mhlarhi.
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