It is heartening, as we head into the uncertainty of the new year, that no less a force than Germany’s Deutsche Bank has its faith on our economic revival, but places the very obvious rider on this prediction: that political stability remains key, and that President Jacob Zuma’s power is kept within bounds.
The German lender expects growing stability in domestic politics to benefit South African bonds, and predicts that this country will probably avoid a debt downgrade.
Another powerful voice was added to this by the stand made by fund managers Nathan Griffiths, who manage around $750 million at the largely European-based NN Investment Partners.
The company’s standpoint is that predictions point to the JSE All-Share Index rallying. But then again, there is the proviso that this would be dependent on curbing Zuma’s power.
While this initially seems bullish for the South African economy, it is the stipulations tagged onto the feelings of the analysts that bear watching.
Stability and economics have always been intertwined in the global investment market. This is an area of non-negotiability.
So, in short, what this boils down to in Layman’s terms: keep calm – if we are to count on a brighter outlook.