Nigeria has displaced South Africa as the continent’s economic powerhouse and in April Muhammadu Buhari was swept into power by an electorate fed up with graft and corruption. Despite its infamous 419 scams and Boko Haram terrorism, scores of South African companies see this as the African growth story of the next decade.
South Africa is known for sunshine, vuvuzelas, safaris and Madiba. A small country, in global terms, at the tip of the vast African continent that lures millions of tourists every year. That is not all that the nation known for the first heart transplant and turning coal into fuel is regarded for. Finweek takes a look at a number of these concepts and products that are standing SA in good stead overseas.
Nobel Prize laureate and one of the world’s top economists, Professor Robert Shiller of Yale University warns that the New York Stock Exchange may be on the brink of a bear market. His past predictions have been accurately fulfilled. His secret weapon, the Cyclically Adjusted Price-Earnings ratio indicates that investors should take caution.
It is often said that South Africa is the most unequal society in the world. Conversation Africa’s Business and Economy Editor Andile Makholwa put a few questions to Haroon Bhorat, Professor of Economics and Director of the Development Policy Research Unit at the University of Cape Town. This article originally appeared in The Conversation.
Nigeria produces more than 2000 films per year. The film industry, Nollywood, is currently ranked as the second-largest in the world in terms of output after India’s Bollywood. Research fellow at the University of Glasgow Lizelle Bisschoff shares on Nigeria’s runaway success story. This article originally appeared in The Conversation.
If the negative economic growth in the second quarter continues for the third quarter of the year, then SA will be in a recession, according to the technical definition. Will SA follow its Brics partners Russia and Brazil? Portfolio manager and investment strategist Maarten Ackerman of Citadel doesn’t think so.
With two new entrants into SA’s small domestic airline market, the company with the biggest bank balance would survive in an environment where large-scale investment is needed to boost airplane efficiencies, Comair CEO Erik Venter told Finweek. Upgrading aircraft to keep them efficient is one aspect of Comair’s cost saving strategy.
South Africa’s major banks have reported record profits, growing 11 times faster than GDP, in the first half of 2015. This performance is driven by the strong growth in the rest of the African continent. Finweek journalist Buhle Ndweni speaks to experts who give insight on the success of these local banks, post- financial crisis.
South Africa’s stock exchange is dominated by large companies such as British American Tobacco, SABMiller and mining giants BHP Billiton and Anglo American. Most funds’ criteria to invest in stocks include a high liquidity, or volume of shares traded, so they can move in and out of a position easily. In the process, a number of smaller companies, called small caps, are forgotten. Finweek spoke to analysts about the outlook of nine such stocks.