President Cyril Ramaphosa has vowed that the government was on track to create 100 000 new jobs by the end of 2023 as it ramps up the Presidential Employment Stimulus (PES) plan.
Immediate reaction to the government’s Budget plans to dig South Africa out of its fiscal hole were positive, with bonds, the rand and equities gaining ground in response to the National Treasury’s precarious balancing act. It gave some tax relief while laying out stringent plans to contain expenses.
However, reality has since set in, with the 10-year government bond losing further ground to 8.99%, a 44.5 basis point increase in yields over the past month, and the rand weakening past the R15 to the dollar level. Contributing to these moves was the rally in the world’s benchmark interest rate, 10-year US Treasury yields, at the start of a new month, with investors finally responding to US Fed chair Jerome Powell’s attempts to calm investors last week.
Magnus Heystek: What ever happened to Ramaphoria?
Magnus Heystek, one of South Africa’s best independent financial advisors, gives his thoughts on the fundamentals underpinning South Africa as an investment destination. Since Cyril Ramaphosa came into power at the beginning of 2018, there was fresh optimism that a change in leadership would shepherd improved economic and structural reforms in order for South Africa to flourish. However, the economy hasn’t managed to reboot itself under Ramaphosa’s leadership and the euphoria of a few years ago has long diminished. Magnus, who is outspoken in his views regarding South Africa, has been one of the most successful financial advisors as a result of his bearish viewpoint on South Africa and bullish sentiment regarding offshore equities. He berates local fund managers, whose performance over the last 7 years has been abysmal given the under performance of the local bourse. These fund managers used to lambast Magnus for his opinions o
Rand celebrates its 60th anniversary by surprising on t dailymaverick.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailymaverick.co.za Daily Mail and Mail on Sunday newspapers.
Business calls for clarity from SONA on SAâs vaccine roll-out
By Siphelele Dludla
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JOHANNESBURG - BUSINESS yesterday issued a clarion call to President Cyril Ramaphosa for a credible vaccine roll-out strategy and to clearly light the economic road ahead in his State of the Nation Address (SONA) on Thursday.
Organisations also stressed that the president must not dither on addressing growth constraints and implementing structural reforms amid an economy ravaged by the Covid-19 pandemic.
The SA Reserve Bank last month forecast that gross domestic product would grow by 3.6 percent in 2021, rising by 2.4 percent in 2022.
Business Leadership SA chief executive Busi Mavuso said the business sector needed precise guidance on the vaccine strategy.