Investments

Venture capital has the power to address SA challenges – but more investors are needed

There is a strong business case for venture capital (VC) investing in South Africa, not least because of the opportunity it presents for positive social and economic impact. This was discussed extensively by a number of key industry players at the Southern African Venture Capital and Private Equity Association (SAVCA) VC Conference 2021 held in Cape Town last week.

Current market may be overestimating the good news while underestimating US equities risks

South Africa’s sovereign downgrade to “junk status” in 2020 set off a chain reaction among the investment community, which was exacerbated by the COVID-19 pandemic. The prevailing sentiment was that local investment carried with it a substantial risk – an opinion that was priced in by the market.

Why the rand is more likely to strengthen from its current level

Although the rand briefly dipped below the psychologically significant R15.00/$ level earlier in November, it has largely trended weaker during the month as the local unit takes its cue from the fraught Turkish Lira. Turkey, for its part, has cut interest rates contrary to the current tightening stance being taken by the rest of the globe.

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