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South Africa ratings not immediately affected by announced 2016 Budget

26 February 2016 | General

Standard & Poor's Ratings Services said today that its ratings on the Republic of South Africa (foreign currency BBB+/Negative/A-2; local currency BBB-/Stable/A-2; South Africa national scale zaAAA/--/zaA-1) are not immediately affected by the National Treasury's 2016 budget, which it presented on Feb. 24, 2016.

Turning the household savings deficit around

19 February 2016 | General

Research from the newly launched Investec GIBS Savings Index reveals two significant macroeconomic factors inhibiting South Africans from saving are substantial unemployment and the slowdown in income growth per capita. Slow economic growth and low productivity growth, the latter which impacts SA on a global competitive basis, also prove significant, as do high young-age dependency levels and easy credit conditions. Consumer spending, at R1.8trillion from R816bn in 1994 in real terms (removes the distorting effect of inflation) mainly consists of expenditure on necessities, with little room left over for significant household savings on a macroeconomic level. Low income households are in the majority, and while living standards and incomes have lifted since 1994 on upward social mobility, substantially more needs to be achieved.

Chances of SA turnaround are rising, but it will take increased Business/Government engagement, says Old Mutual

18 February 2016 | General

The chances of South Africa’s economic and political prospects turning around are rising, but this is still not guaranteed and will not be a smooth path. This is according to Old Mutual Emerging Markets CEO, Ralph Mupita, and Old Mutual Investment Group Chief Economist, Rian le Roux, who say that with the upcoming Budget from recently reappointed Finance Minister, Pravin Gordhan, attracting critical attention from global sovereign ratings agencies, more collaboration is required between Government and Business to help turn this rising hope into progress.