Last year, Business Insider Africa reported that London-headquartered Jubilee Metals Group had become the latest multinational to trim its South African footprint, confirming progress in selling its chrome and PGM operations to One Chrome, a private mining and metals trading company. The completion of the sale now formalizes that move.
Jubilee said the disposal will allow it to focus on its copper business in Zambia, where management believes growth prospects are stronger and less capital-intensive, supporting higher earnings potential.
A growing exodus of companies
Jubilee isn’t alone. BusinessTech and market data show a string of international companies exiting or scaling back operations in South Africa, including global consultancies, banks, and energy firms.
Names in this exodus include Bain & Company, HSBC, BNP Paribas, IG Group, and Shell, among others, as they reallocate capital toward core markets or more favourable growth opportunities.
Experts point to multiple factors driving this retreat. Persistent power shortages, high electricity costs, and intensive capital requirements for industrial operations have made many sectors uncompetitive. Small businesses are also under pressure, with liquidations on the rise as operating costs climb and consumer demand softens.
The cumulative effect on South Africa’s economy is significant. Rising business liquidations and corporate exits dampen investor confidence, reduce employment prospects, and shrink the economy’s productive base.
Analysts warn that unless structural issues which range from energy reliability to regulatory reform are addressed, more firms may relocate capital and talent elsewhere, further straining South Africa’s position as a regional economic hub.
