Star 2024-08-29

ABSA HAS REVISED its 2024 and 2025 growth forecasts for South Africa’s economy on the sustained stable supply of electricity, slowing consumer inflation and pending interest rate cuts, as well as the apparent support for structural reforms in the ports and rail sector by the Government of National Unity (GNU). In its South Africa third quarter of 2024 Quarterly Perspectives’ report yesterday, Absa said it was more constructive on growth than in the last Quarterly Perspectives. Absa said recent high-frequency activity data suggest a stronger rebound in the second quarter than it expected earlier after the slight gross domestic product (GDP) contraction in the first quarter. Absa’s Corporate and Investment Bank (CIB) senior economist, Miyelani Maluleke, said they had lifted their 2024 real GDP growth forecast by 0.2 percentage points…

SOUTH African companies are priori- tising the UN’s Sustainable Development Goal (SDG) of Decent Work and Economic Growth, while aspects such as education, industry innovation and infrastructure as well as responsible consumption and production have fallen in priority, according to a voluntary industry survey. This information was contained in South Africa’s second Voluntary National Review (VNR), which tracked progress against the first one, released in 2019. More than 100 companies engaged in the process of compiling the report, with more than 300 individuals providing insights and 76 companies contributing case studies. Covering companies across various sectors, including Absa, Bidvest, Clicks Group, De Beers, Gold Fields, and Vodacom, the report said the fact that companies were pushing decent work and economic growth was expected, as this is the “powerhouse goal for…

THE CAPE TOWN meeting of the New Development Bank (NDB) beginning this week highlights the benefits of South Africa’s role in global institutions such as the G20 and BRICS+. Dawie Roodt, the chief economist of the Efficient Group (EG), said the benefits were obvious. “There are trade and investment opportunities and the opportunity to borrow from the NDB at favourable rates. But there are other benefits as well like the exchange of knowledge and being part of a club with some political influence,” Roodt said. North-West University Business School economist, Professor Raymond Parsons, said the country must nurture its key trade and supply chain links, encourage positive investment trends, and promote the currency stability that are linked to these relationships. “South Africa must leverage its membership of the BRICS, the…

PRESIDENT Cyril Ramaphosa has committed his government to working with Business Unity South Africa (Busa) to drive economic growth that improves the quality of life for all, after big business pushed back against National Health Insurance (NHI) in the second Presidential Health Compact. The Presidency last week brushed aside big business’s concerns over the explicit support of the NHI by the second Health Compact, saying that the country needed a compact that was responsive to the challenges facing its health system. Busa said it did not agree with the draft of the compact given the serious differences between it and the government as to the appropriateness of the NHI Act, let alone its feasibility as a legislative instrument to underpin universal health coverage. Addressing the Busa annual general meeting yesterday,…

THE PAST 12 months have been a roller coaster for the Johannesburg Stock Exchange (JSE). As the world grappled with economic uncertainties, inflationary pressures, and geopolitical tensions, the JSE, like many global markets, experienced periods of significant volatility. However, amid the bearish market sentiment, some South African companies saw an opportunity to make strategic acquisitions, capitalising on lower valuations and setting the stage for future growth. This article delves into how these companies leveraged the downturn, the strategies behind their moves, and what this means for the South African economy in the coming years. A challenging market landscape The JSE, Africa’s largest stock exchange, has not been immune to the global economic challenges that have defined the last year. The market saw sharp declines in various sectors throughout 2023, driven…

IN THE EVER-EVOLVING world of investment strategies, individual investors are constantly seeking ways to optimise their portfolios. While investing in an S&P 500 index tracker has long been a cornerstone of many portfolios, there has been growing interest in blending the traditional approach with sophisticated hedge fund strategies that are now readily available to the broader investing public. The traditional approach: S&P 500 index trackers S&P 500 index trackers have been a popular choice for investors for decades, and for good reason: 1. Low-cost exposure to 500 of the largest US companies across various sectors. 2. Simplicity in investing without requiring in-depth knowledge or active management. 3. Solid long-term historical performance, often outperforming many actively managed funds. However, index trackers are de- signed to match market performance,…