Assets & Investments

The euphoria of the ‘Africa rising’ narrative may have faded after slowed economic growth across the continent over the past few years, but there...

The phrase "radical economic transformation" is on everybody's lips and the international economic world is watching South African politicians to see how this phrase will play out in changes to the economic policies.

"It’s inevitable that currently authorised financial services providers are going to have to change their business models to adapt to a revised licensing framework,” says Thulani Dyasi, who works in the Banking and Financial Services Regulatory Practice Group at pan-African law firm Bowmans.

When contemplating the purchase of a business as a going concern, it is necessary to carry out the appropriate due diligence of the respective business.

While South Africans are still coming to terms with the implications of junk status (so far not much), global markets are not standing still and a number of notable developments are taking place.

In a boon for the property market, the Supreme Court of Appeal has ruled that municipalities that demand property sellers pay many months of rates, fees and charges prior to issuing a rates clearance certificate to transfer the property, may no longer do so.

Two weeks have passed since political drama caused havoc in markets yet again, this time with very serious consequences for the South African economy, consumers and investors.

Small business representative organisation AHI says the news that the rating agency, Fitch, has downgraded South Africa's credit rating to sub-investment grade will lead to catastrophically lower economic growth, with some estimating billions of Rands in outflows and a doubling of our current account deficit.

It has happened! For months we, as a nation, have been struggling and fighting not to be downgraded to junk status, but on Monday, 3 April 2017, following the cabinet reshuffle, it was announced that South Africa’s sovereign credit rating was cut. However, what does that mean?

On 3 April 2017, Standard and Poor’s Ratings Services decided to cut South Africa’s international credit rating from BBB- to BB+. A rating of BB+ is considered below investment grade (sometimes referred to as "junk status”). Unfortunately, the negative ratings outlook was also retained, suggesting that S&P could revise the country’s credit rating lower at year-end should the fiscal parameters deteriorate significantly.