Tag: Ian Matthews

The first quarter GDP growth of 2019 for South Africa announced 4 June, and it is once again a negative number. The numbers are showing that the South African economy contracted 3.2% year on year, following a 1.4% growth in the previous period. It was the sharpest decline in the GDP since the first quarter of 2009, as output declined sharply in manufacturing, mining, agriculture and utilities.

The stakes have never been higher, and despite Minister Tito Mboweni’s always-jovial presence in parliament as he tabled Budget 2019, his words prepared us for the bitter medicine that must be swallowed before we can experience economic recovery.

Over the last few weeks, President Cyril Ramaphosa said repeatedly that the private sector is invited to enter into meaningful partnerships with government in establishing an Infrastructure Fund. Ramaphosa said infrastructure expansion and maintenance had the potential to create jobs on a large scale, attract investment and lay the foundation for sustainable economic expansion.

Hot on the heels of President Ramaphosa telling the European Parliament on 14 November  that South African land reforms will be enacted in adherence to the country’s Constitution, the joint constitutional review committee formally recommended that section 25 of the Constitution be amended to allow for expropriation of land without compensation.

The 2018 Medium Term Budget Policy Statement (MTBPS) will be a key determinant for SA’s credit ratings. A Moody’s Investors Service credit ratings decision was initially scheduled for 19 October 2018. Moody’s is now expected to release its statement on South Africa's sovereign credit rating after Finance Minister Tito Mboweni delivered the MTBPS.

In the Land Bank’s 2018 Annual Report released earlier this week, the top risk on a list of 18 principal risks is unsurprisingly the issue of land reform and the impact of the possibility of Expropriation Without Compensation (EWC). 

The whole of South Africa is still in shock after the South African Reserve Bank has announced that SA is in a technical recession following two consecutive quarters of negative growth. Most analysts had expected a moderate increase in GDP.

President Cyril Ramaphosa activated the controversial Investment Act 22 of 2015, by publication of a notice in the Government Gazette, on Friday 13 July.

The South African Revenue Service (SARS) released a Service Charter earlier this week. The Service Charter outlines taxpayers’ rights and responsibilities as well as service standards taxpayers can expect from SARS. Acting SARS commissioner Mark Kingon urged South African taxpayers to become familiar with the document.

The South African Parliament agreed on 27 February 2018 to review section 25 of the Constitution with a view to amending the Constitution to allow for the expropriation of land without compensation as tabled by the Economic Freedom Front. This was met with surprise and consternation from banks, the agricultural industry and the international investor community.