MAVERICK BUSINESS: A look at what might happen if South Africa is ‘junked’ in two weeks’ time By Tim Cohen tim_cohen
The ANC’s support in the election campaign appears to be holding, and according to opinion polls, President Cyril Ramaphosa’s popularity is soaring. The leadership of a business-adept president along with investment and jobs summits was supposed to have a catalytic effect of the economy.
As a result, South Africa is hanging on by a thread to what is known as a “mixed rating”, and has avoided the ignominious tag of being “junked” or, more precisely, South Africa’s debt would be trading in junk bond territory. When you have more than R1-trillion in government debt swishing around in international markets, this is not a minor issue.
For South Africa, there is another big problem. To some fanfare, the country became a member of the World Government Bond Index in 2012. Bond index funds are enormous, and just participating in this index more or less required international investors to invest in South Africa’s bonds to make sure their returns matched the index.
Reading between the lines a bit, it may be that Finance Minister Tito Mboweni had a terrible decision to make prior to the budget: Either save Eskom or try and stave off a junk rating. He chose the former, announcing a thumping great rescue package for Eskom, presumably on the basis that if Eskom wasn’t saved, South Africa’s partial-investment grade rating was toast anyway.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Newsdeck: South Africa Sees Land-Law Change by End-2019 at `Very Least’Changes to South Africa’s constitution to make it easier to expropriate land without compensation will only come into effect by the end of the year at the earliest, according to the lawmaker who is overseeing the amendment.
Read more »
Newsdeck: South Africa’s Biggest City Suffers `Huge’ Power FailureSuburbs across Johannesburg, South Africa’s economic hub, were hit by widespread power outages on Friday after systems tripped.
Read more »
New Sars boss to call in Tax Inspectors Without Borders?🔒 Jailer-turned-taxman-turned-florist Tom Moyane so denuded our revenue service that it is likely to be some time before we reap the full benefits of the emerging global tax regime.
Read more »
Newsdeck: South Africa’s PIC Skirted Rules by Merging Roles, Inquiry HearsSouth Africa’s Public Investment Corp. breached the money manager’s own memorandum of incorporation when the positions of chief investment and executive officers were combined under Dan Matjila, a former employee said.
Read more »
Cassava Fintech launches cross border money service from SA to Africa | IOL Business ReportCassava Fintech South Africa has launched an enhanced cross-border money transfer service from South Africa to the rest of Africa
Read more »
YouTube Music launched in South AfricaYouTube launched a new music streaming service.
Read more »
South Africa hands over humanitarian package to Zimbabwe | IOL NewsDirco Minister Lindiwe Sisulu and Transport Minister Blade Nzimade handed over a humanitarian package in Harare.
Read more »
Lesotho coach turns to South Africa for advice on how to qualify for AfconLesotho are one win away from reaching the Africa Cup of Nations finals for the first time, and coach Moses Maliehe is using South African resources to help him prepare for a vital last qualifier on the road to the 2019 tournament in Egypt.
Read more »
OPINIONISTA: Abortion providers — the custodians of reproductive justice in South AfricaSunday 10 March marked Abortion Provider Appreciation Day. These are men and women providing a service many health professionals shun. In South Africa, despite a progressive law, abortion providers continue to face stigma and difficult working conditions.
Read more »
Lesotho coach turns to South Africa for advice on how to qualify for AfconLesotho are one win away from reaching the Africa Cup of Nations finals for the first time, and coach Moses Maliehe is using South African resources to help him prepare for a vital last qualifier on the road to the 2019 tournament in Egypt.
Read more »