Posts tagged with 'investments'

 

SA, the country once known as the most prosperous one on the African continent, is downgraded by Moody’s to position near to junk status

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While Cyril Ramaphosa delights in the Rugby players’ victory in Japan, Moody’s downgraded the country’s financial position near to junk status.

In the next 12 to 18 months, the Ramaphosa regime will have to implement good plans otherwise there will be another major setback for the country that was once known as the most prosperous one on the continent.

Moody’s is the last of the three major rating agencies to still show patience and not like Standard & Poor, as well as Fitch had previously seen the SA economy as a loser, and downgraded the country to junk status.

It is now becoming increasingly difficult for SA to borrow money, and investors are now more than ever hesitant to invest in a poor economic environment.

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Irregular expenditure by ANC-parastatale entities increases to R61,3bn – only a stupid foreign investor will invest in SA

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Auditor-General Kimi Makwetu warned the government that further bailouts to state entities would increase the budget deficit and lead to credit downgrades. The state advanced R446 billion in the 2018/19 financial year to eleven state-owned entities. Irregular expenditure increased from R51 billion to R61.3 billion.

A financial expert said in response to the alarming spending spree, it would be just a stupid foreign investor reacting to Ramaphosa’s attempts to attract investors to South Africa.

The ANC president was in London two weeks ago to recruit new investors, but informed sources indicate that although promises have been received, it will be again as before and no one will actually commit.

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Power outages cost SA millions of rands a day and could mean an economic downfall

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Ramaphosa may forget to go ahead with successful results whilst begging for investments when Eskom has already started shedding power, says a well-known economist from Pretoria.

Eskom’s load shedding, without any announcement, costs South Africa millions of rand a day, and the entity is in two ways destroying the country economically.

On the one hand, industries, business people, schools and government departments are all harmed by the load, while South Africans have to pay for power through their necks.

Secondly, the state treasury is being emptied to keep the incompetent power supplier standing, and the demand is growing that the ANC and the Eskom chiefs should all resign their offices because they are ruining the economy, he said.

Experts point out that it will now cost as much as R1.8 trillion to get the bankrupt Eskom back on a healthy footing, and no one will trust the Ramaphosa regime with such an amount, Bart Griffiths said.
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Ramaphosa on begging mission in London in an attempt to save penniless SA from economic ruin

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ANC President Cyril Ramaphosa is on a begging mission to London in an effort to prevent the bankrupt South Africa’s economic downfall.

The visit is a result of the recent appointment only the Presidential Economic Advisory Council, which is apparently composed of experts and recommended that the ANC go begging abroad.

With municipalities that are technically bankrupt due to their debt burden to Eskom, and the power provider’s operating loss of R21 billion, as well as a debt burden of R430 billion, investors are unlikely to risk investing in South Africa.

With Moody’s as the only rating agency that has not yet downgraded to junk status, Ramaphosa’s mission is once again doomed to failure.

His promise of two years ago for investors to invest billions in South Africa was a gimmick that led to nothing, and his new mission will be full of promises, but nothing will happen, he said.

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Chinese ambassador spells out the blunt truths about investment in South Africa – Appears that they want to take over after incompetent ANC destroys SA

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China’s ambassador to South Africa, Lin Songtian, has made it clear: if South Africa hopes to attract the further Chinese investment it needs to resuscitate its stagnant economy and it has to renovate its infrastructure, including revitalising the governance of state-owned enterprises.

China’s ambassador to South Africa, Lin Songtian, is a master of the back-handed compliment.

Reportedly connected to the highest echelons of his government, he manages to convey tough messages to Pretoria, wrapped in layers of praise.

At a seminar at the Chinese embassy in April, for instance, he said that he “always speaks highly of South Africa”.

“Because why? Because 20 years ago South Africa was much better than China. And 10 years ago when I passed through here on the way to Malawi (to become ambassador) you were then a little better than China, in terms of infrastructure, market mechanism; the judicial system and so on.” And then he added,
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Ramaphosa lets the cat out of the bag: The bad news: ‘Our money’s up’

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Ramaphosa acknowledged in parliament on Thursday that South Africa’s financial resources were depleted while the country’s development needs were enormous. He did not say straightforwardly whether he supported “prescribed assets”, he said later, the pension fund industry and other stakeholders needed to talk about using pension fund assets to support the country financially. The country’s money is running out and South Africans’ pension fund assets are becoming an increasingly likely target for the government to pull the wagon through, it became clear on Thursday.

According to Ramaphosa, pension fund assets in other countries are used to invest in the development of the country and pension funds achieve good returns from infrastructure projects in particular. He says the trade union Cosatu supports its view that workers in SA’s pension money are used this way. According to Ramaphosa, this is considered positive by the
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Foreigners are dumping SA bonds at a rate of almost R2 billion ($132 million) a day as junk status looms

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Investors have been dumping South African government bonds at a rate of almost R2 billion ($132 million) a day in August.

With issuance increasing and a downgrade to junk a looming possibility, non-residents have sold a net R14.4 billion of the debt in August so far, according to JSE data compiled by Bloomberg.

That’s an average of R1.8 billion a day. The sales have wiped out inflows at a time when the country needs foreign investment to close a current-account deficit that was equivalent to 2.9% of gross domestic product in the first quarter.

The government increased the amount of local-currency debt sold at weekly auctions by 37% last week to help pay for a 128 billion-rand bailout for Eskom Holdings SOC Ltd., the state-owned electricity company.

That will push up borrowing and widen the budget deficit, placing the country’s last-remaining investment-grade rating at risk. Moody’s Investors Service, which rates South Africa’s deb
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Investors do not want to invest in SA since our national power provider is so unreliable – Communists now demand the end of load shedding after it has already cost the country billion Rand in recent weeks

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ANC, SAKP, Cosatu and Sanco are now demanding the end of load shedding in South Africa.

It is ironic that the people in charge of the country, that is, the ruling ANC party, its alliance partner, the SA Communist Party and unionists now demand that the shedding of power must be discontinued.

The ANC’s Zizi Kodwa issued a statement on behalf of the parties in which statecapture and corruption is blamed as well as Eskom’s incompetence to thrive. During the meeting of partners, the failure of local government was criticised as well as the inability to provide basic services.

In terms of power, the country has already spent billions of Rand in recent weeks, and Ramaphosa’s efforts to attract investors are being harmed by the power supply that is extremely unreliable.

Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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