Dubai/London — South African companies that have diversified beyond the country’s borders are the best bet for investors, because their fortunes are less tightly entangled with the political risks posed by the presidency of Jacob Zuma, said Mark Mobius, the executive chairperson of Templeton Emerging Market Group. Decisions taken by Zuma have moved markets, most recently in March, when he fired finance minister Pravin Gordhan. The rand weakened and S&P Global Ratings and Fitch Ratings stripped SA of its investment-grade credit status. Risks from shocks like that can be mitigated, Mobius said. "We look at the companies and see how dependent are they on government policies," Mobius said in an interview in Dubai on Tuesday. "SA has some of the best-managed companies in the world. And a lot of these guys were smart enough to expand globally." Mobius said he is bullish on consumer companies in markets from Brazil to Saudi Arabia, and that Venezuela could become a hot-spot for investors s...
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