FUNDAMENTALS
PATRICE RASSOU: Own goals aside, the bounce of the ball has been unkind to SA
When #CR17 (the Cyril Ramaphosa 2017 campaign) won the ANC elections, a sense of euphoria gripped local markets reminiscent of clinching the 2010 World Cup. In the final quarter of 2017, SA Inc shares embarked on a mazy run, with apparel retailers up 23% and banks up 28%, shaking off earlier jitters caused by the red carding of two finance ministers. In footballing terms it was more akin to recruiting Cristiano Ronaldo, the Real Madrid forward, to lead Bafana Bafana and a hat-trick of successes followed: the country escaped a debilitating downgrade to junk for our local debt, regained investor confidence — which led to a sharp strengthening of the rand — and this was crowned by a confidence-boosting 3% economic growth rate. The headlines heralded a new era, and foreign investors drew parallels with the Brazilian market. Two years ago Brazil’s GDP had contracted by almost 6%, with massive fraud at state-owned firm Petrobras, one of the largest companies in Latin America. With two pre...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.