Investors spooked by the uncertainty surrounding the fate of President Cyril Ramaphosa have pulled their money out of South Africa, with billions of rands already gone to greener pastures.
The big worry in financial markets was about who would take over from Ramaphosa if he resigned, and whether his successor would ensure continuity in his economic policies, maintain the structural reform agenda and exercise prudence in public finances.
Underscoring this is that within hours of the Phala Phala report’s release, food manufacturer Premier Group cancelled its JSE listing, which had been set for 8 December, citing uncertainty and volatile markets.understands that Premier would have been worth more than R5-billion on the JSE and that the company had received support for its listing from institutional investors. But the market rout inspired by Phala Phala made some investors nervous, prompting them to pull out.
For example, Gryphon Asset Management, based in Cape Town, has been negative towards SA-based investments for the past three years.
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