The latest MPC decision is the third successive increase since the SARB began its interest-raising cycle in November 2021 to deal with a deteriorating inflation outlook.
A failure on government’s part to exhibit any sense of urgency to make hard decisions regarding South Africa’s recovery process will exacerbate the country’s current economic challenges. A lack of economic growth over close to a decade – particularly compared to South Africa’s emerging market peers – has meant that the country’s income has not been able to accommodate either population growth or spending patterns.
South Africa is the country that never stops surprising. Often, they are surprises we would rather not have, and sometimes we wish we were not naïve enough to be shocked. The list is long, but recent additions include yet more corruption scandals and more news of government mismanagement and of course the devastating looting and unrest that rocked KwaZulu-Natal and parts of Gauteng in July.
The success of an economy can be measured against a simple mantra: Everyone who wants a job, has a job. This is the view of Kevin Lings, chief economist at STANLIB, who spoke on Thursday at the 2021 Allan Gray Investment Summit. The virtual event brought together local and international investment managers and other finance...
It has been predicted that the nationwide riots and looting that took place in July are likely to cost the country close to R50 billion in lost output. While the exact scale of the loss of earnings, job losses and damage to infrastructure is yet to be quantified, the rand’s drop by as much as 2% against the dollar in the wake of the destruction may leave potential investors second guessing their investment strategies.
Driving inclusive and long-term growth for South Africa starts with participation and collaboration. All businesses, both listed and private companies and individuals who have the funds, should invest in our country, and work together with government to create employment opportunities. We cannot only generate revenue and issue dividends to shareholders without reinvesting so that future generations can also reap the benefits.
Widespread civil unrest centered on KwaZulu-Natal and Gauteng provinces has left several businesses and supply chains in South Africa in disarray. S&P Global Ratings does not expect immediate rating actions, but that doesn't rule out a weakening of corporate credit quality in the next few years.
On Thursday, 15 July, Government Ministers representing the Presidency and Departments of Public Enterprises, Trade, Industry and Competition, Agriculture, Land Reform and Rural Development, Small Business Development, Justice and Correctional Services, and Tourism met with 34 CEOs of South Africa’s largest companies and multinationals to discuss the crisis of sabotage, lawlessness and looting in KwaZulu-Natal and Gauteng.
Following on from our meaningful upgrades to South Africa’s growth outlook on stronger cyclical (global) tailwinds (see South Africa: Moving on up, dated 10 June), we have now also updated our fiscal assumptions and scenarios for the country.
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za