SA’s leadin indicator for the business cycle surged in December while the pace of company failures slowed last month, adding to evidence the economic recovery is gathering momentum. The leading indicator compiled by the Reserve Bank climbed 13,9% compared with December, up from 11,8% in November, its data showed yesterday. That suggested official figures today […]
Category: business
S. Africa: manufacturing and financials grow GDP
The economy grew faster than expected in the fourth quarter of 2009, boosted by a continued bounce in manufacturing and a return to growth in the financial sector. Statistics SA said GDP grew by 3.2% in the fourth quarter of last year on a seasonally adjusted and annualised basis, compared with an expansion of 0.9% […]
Banks in Africa seek 1bn from ADB’s trade initiative
The African Development Bank (ADB) has received applications from regional financial institutions for about 1bn of trade finance since launching its new facility a year ago to stimulate African trade flows after the global financial crisis. “By providing liquidity and sharing risk with African financial institutions, the trade finance initiative will facilitate Africa’s exports and […]
S.Africa: political risk ranks as top concern for banks
Political risk has replaced financial risk as the number one fear facing the global banking industry, according to the annual global Banking Banana Skins survey. Credit risk was the second- biggest concern among respondents and the biggest issue in emerging market economies. The survey, which also polled six bankers in SA, is based on the […]
South Africa retains its position on IPRI
According to the 2010 International Property Rights Index (IPRI) released today, South Africa has retained its position at number 24 out of 125 countries measured. The index is prepared annually from a study conducted by a Hernando de Soto, Fellow at the Washington-based Property Rights Alliance. It is supported by 62 partner organisations worldwide, including […]
Bank has built 25% Eskom hike into targets
An electricity tariff increase of 25%-30% would have only a marginal e ffect on the Reserve Bank’s inflation targets over the medium term, a top Bank official said on Tuesday in the run-up to Wednesday announcement by the National Energy Regulator of SA (Nersa) about its decision on Eskom’s tariff application. Eskom applied for a […]
Private owners an anomaly at Bank — Marcus
The role of private shareholders with personal agendas in the appointment of half the Reserve Bank’s board of directors had created an “unhealthy” and fraught situation, the Bank’s governor, Gill Marcus, said on Tuesday. It also affected the calibre of directors, who should act in the best interests of the organisation, she told Parliament’s finance […]
S.Africa: Bank has no specific role in growth – Marcus
Reserve Bank Governor Gill Marcus told MPs on Tuesday that the expanded mandate of the bank passed to her by Finance Minister Pravin Gordhan last Wednesday, which explicitly requires the bank to consider economic growth and job creation, does not mean that the bank has a specific role in these matters. She also made it […]
WB puts new Congo deals on ice until row resolved
The World Bank’s private investment arm, the International Finance Corporation (IFC), will not make new commitments in the Democratic Republic of Congo until a dispute over a cancelled mining contract is resolved, a spokesman said. The IFC owns 7,5% of a 553m copper and cobalt project led by Canada’s First Quantum Minerals that the Congo […]
South Africa world's biggest welfare state
Social expenditure in SA will top R89bn this year making it the world’s largest welfare state, economists say. A R55bn property scheme to build accommodation for the Soccer World Cup appears to have turned bad and could force many leading property developers into liquidation. Johannesburg – Social grant expenditure is estimated at R89bn in the […]