As investors seek higher-yielding assets against a backdrop of slowing growth in the US and Europe, sentiment towards emerging markets such as SA could be changing — which would come as a welcome reprieve from the years of being under the piercing gaze of global investors and ratings agencies. Such a climate will be helpful for a country in desperate need of some fixed investment spend from the private sector, because it could help boards and their CEOs to sell the idea of sinking capital into a local project. That's the immediate benefit of a shift in sentiment, but should it happen there might be a temptation to concentrate less on the deep structural reforms that are needed with regard to everything from power generation to providing additional spectrum. Lessons to be learnt We should heed the lessons that are to be learnt from Europe's political deterioration in the years since the height of the sovereign debt crisis. At the height of the old continent's crisis - during which mo...
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