Local is not lekker for SA companies — from construction to sugar

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The 10 worst SA performers tell a tale of an ailing economy, with only palladium bringing any hope

It is not even the end of the first quarter and already there is a plethora of once-significant SA companies that have either collapsed or had their share prices hit the wall.

While property and construction have suffered some of the worst declines this year, the malaise is not limited to those industries. From technology to telecommunications, retailers, consumer goods, agriculture, education and financial services, SA companies are battling with crippling unemployment levels, plummeting business confidence, instances of corporate malfeasance and a lifeless economy that expanded just 0.8% last year.

For construction companies? Years of mismanagement, corruption and under-spending on state infrastructure have left builders without enough things to build. In the background, of course, there are consumers who are shopping less and straining under increased taxes. One ray of hope is the soaring palladium price. This has caused the shares of companies such as Impala Platinum, Lonmin and Anglo American Platinum to outperform most stocks on the 165-member FTSE/JSE Africa All Share Index this year.

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