SA's 'strike season' bodes ill for investor confidence and for the country's post-pandemic recovery. Picture: WERNER HILLS
SA's 'strike season' bodes ill for investor confidence and for the country's post-pandemic recovery. Picture: WERNER HILLS

In this edition of Business Day Spotlight, we talk about the possible effect of strikes on investor sentiment towards SA.

Our host Mudiwa Gavaza is joined by Andrew Duvenage, MD of NFB Private Wealth Management.

Join the discussion: 

The discussion begins with Duvenage giving insight into how his business has been affected by Covid-19. NFB is a private wealth company with about R35bn in assets under management.

He says the pandemic has had a negative effect on the fortunes of people at all levels of the economy. Initial panic when the world went into lockdown meant some sold off their investments as the market fell. Those who chose to remain, however, were able to benefit from the rebound.

Duvenage says this year’s strike season is especially important for a country looking to claw back the losses caused by the pandemic. Labour has a tumultuous relationship with employers in both the public and private sectors, and the tensions have the potential to scare off much needed investment.

Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI.
Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI.

An urgent priority for SA is to restore confidence in the country as an investment destination if it is to have any hope of achieving an economic recovery, Duvenage says. However, to achieve this requires the government to implement structural reforms and make a substantial shift in ideology. With ‘strike season’ in full swing and knowing from experience that strike action always has a huge impact on investor confidence, 2021 brings other complexities that could be far worse than previous years given how “bad” the economic is looking right now. “This is the very last thing the country needs — so what should be happening to protect the country?” Duvenage says.

The discussion focuses on the potential impact of strikes on investment sentiment; the attitude of investors — both foreign and domestic; the country’s economic trajectory; NFB’s business model; and an outlook for the rest of the year

SA is competing with other countries and industries to attract investment, Duvenage says. As such, any issues that could affect the stability of the economy should be managed. “Investors vote with their feet,” he concludes.

Engage on Twitter at #BDSpotlight

Subscribe: iono.fm Spotify | Apple Podcasts | Pocket Casts | Player.fm

 Business Day Spotlight is a MultimediaLIVE production.

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.