Last week’s unrest in KwaZulu-Natal is a further blow to SA’s reputation as a ‘go to’ destination for emerging-market investorsThere is a general sense of unrest around the world as seen with riots in the US and close to home in Eswatini, pointing to the growing gap between rich and poor in different countries exacerbated by Covid-19.
Host Mudiwa Gavaza is joined by Adriaan Pask, chief investment officer of PSG Wealth. PSG Wealth, which provides wealth management services, is part of listed financial services group, PSG.The discussion focuses on the impact of recent unrest on SA’s economic outlook; the growth of civil unrest in other parts of the world; the state of emerging-market economies at the moment; how SA compares with its counterparts; and the recent performance of the rand.
Besides the physical damage and destruction, last week’s violence has probably caused long term damage to investor sentiment, Pask says. Where SA was once a “go to” for international investors looking for exposure to emerging markets, that image — already dented by the Covid-19 pandemic, has been further tarnished.
Pask also highlights the general sense of unrest around the world as evidenced by riots in the US earlier this year and more recently, close to home in Eswatini. The likely cause is the growing gap between rich and poor, which he been exacerbated by the pandemic, he says.Locally, the rioting has added to the pessimism of South Africans looking for ways to save, invest and grow their wealth.
Though the rand weakened over the past week, this was more a function of the strong dollar than the protests, Pask says.