Are SA equities just cheap or is there more to it?

Over the past decade, SA equities have significantly underperformed its global peers, as macro factors have significantly deteriorated in South Africa. The investment case for SA equities, as a result, has centred around a valuation argument rather than that of an improving structural story. We unpack such dynamics but propose four drivers of return, which we think are likely fuel a strong cyclical rebound for this asset class.