WATCH: SA’s cost of capital increases during the Covid-19 crisis

Government ministers would be shocked by the economic value implications of sovereign risk and its impact on the cost of capital. Credit default swaps have widened to 300 basis points since Covid-19 struck, further raising the cost of capital for businesses to invest in SA.

Michael Avery speaks to Prof Brian Kantor, an economist and head of the research institute at Investec Wealth & Investment; and David Holland, a co-founder of Fractal Value Advisors about the relationship between the cost of capital, investment and SA’s economy and what the government can do to bring down the cost of capital.