Tag: ratings downgrade

Lullu Krugel, Chief Economist at KPMG in South Africa, shares insight on how South Africa will get out of recession and to turn around the non-investment grade position, the country must embrace transparency and change in leadership and direction.

With South Africa already on precarious ground as a result of its alleged ‘state capture’, not least also the effects of South Africa being...

How should companies and organisations respond to the unpredictable consequences of the recent downgrade of South Africa’s credit rating by two major agencies? Business owners, senior managers and company executives need to prepare themselves for a bumpy second quarter in 2017, with the only certainty being that nobody really knows how much the downgrades by rating agencies and the weaker rand will impact on the economy.

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.

Talk of radical economic transformation, a concept that has dominated public discourse in recent months, is an outcome of government policy failures, which have left the majority black population on the margins of the mainstream economy, speakers argued during a panel discussion organised by the University of Cape Town Graduate School of Business (GSB) on Wednesday 19 April.

Few people realise that the largest source of business funding in South Africa is provided by private companies themselves. Businesses extend credit to their customers and obtain credit from their suppliers, usually in the form of short-term funding which lasts for 30 to 60 days per transaction.

From a small and medium enterprises (SME) perspective, the current economic environment is more conducive to growth and opportunity than it was a year ago.

After a tense period in which the three major global ratings agencies assessed the local economy, government policy and more, South Africans can head...

After narrowly escaping Fitch and Moody’s downgrades last week, South Africa is still on tenterhooks over S&P’s rating decision. But investors should beware of...