Government must heed financial report

In the midst of the gloom, there is a slight fillip of encouragement in a report which says that South Africa’s financial markets are modern, robust and transparent … something which is essential to attract investors.

A research report by the Official Monetary and Financial Institutions Forum as part of its annual study into the development of financial markets in African countries – done in collaboration with Absa – found SA has the best-regulated, largest and most liquid markets, robust legal frameworks and best access to investment capital and foreign exchange in Africa.

The rest of continent, however, is far behind and deteriorating. Overall, other African countries have declined as places of interest for investors. The assessment is good news because it reflects the way the rest of the world – and specifically those considering putting money into this country – view us.

It is a view which is about money and less about politics and societal turmoil. However, any moves by government – perhaps under pressure from the populists – to interfere with these strong fundamentals could see South Africa rapidly descend to the levels of the rest of the continent. Government must pay close attention to this report.

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