Investment
Article Abstract:
The collapse of the South African rand in Feb 1996 has led to a loss of confidence from foreign investors and capital inflows dropped. Financial services have attracted much of the foreign investment entering South Africa. Centre Re has provided capital to underwrite Home Loan Guarantee Company's risks. Home Loan provides guarantees for mortgage lenders involved in housing in poorer regions. There are uncertainties as to the impact of the abolition of exchange controls. Privatization should help encourage foreign investment when the program takes off.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Financial services
Article Abstract:
South Africa's financial services industry is performing well. Visa is introducing a credit cards controlled by a micro-chip, together with FNB and Nedcor. This reflects the development of automated banking in South Africa. Unit trust sales are rising due to the tax benefits they bring. Equities have performed well with returns above the inflation level. There is intense competition for pension fund business. The financial services industry would like to see an end to exchange controls.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Mining
Article Abstract:
Output from gold mining has dropped to 50% ofprevious levels in the two decades to 1996, accounting for 5% of the economy in 1995 compared with 18% in the 1980s. Mines tend to be deep with high costs. Labor costs could be reduced with shifts used more efficiently and multi-skilling, but agreement is needed from labor unions. The drop in the value of the Soth African rand has helped the mines. South Africa also produces coal, diamonds, manganese and ferrochrome.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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