DEFENSIVE STRATEGY
Firms cling to cash amid high policy uncertainty, say academics
Holding on to funds not an investor strike but rather a barometer of reaction to excessive insecurity levels, say Raymond Parsons and Waldo Krugell
20 September 2021 - 05:10
Prolonged policy uncertainty, whether it be lack of clarity on land reform or the end state of the electricity market, has left SA’s corporates sitting on pent-up cash.
Data from the SA Reserve Bank showed that by July, SA’s private non-financial corporates held more than R1-trillion. This comes as fixed investment in the economy has declined to historical lows, slumping below the levels considered necessary to boost economic growth...
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