BUSINESS MAVERICK: The run-up to elections thwarts Africa’s M&A activity and South Africa is not spared

Historically, general elections are a source of angst for the investment and business community around the world.

The business and investment community in South Africa and Africa as a whole is no different, if the latest figures by financial data provider Refinitiv are anything to go by. Industry players said political and economic uncertainty are the main reasons for the rapid decline in investment banking fees. You don’t have to look far for seismic events that spur uncertainty: the UK’s on-going and confusing Brexit negotiations, US President Donald Trump taking a more protectionist stance on global trade, South Africa’s own political madness – just to mention a few.

Neuville expects that data for the second quarter to be subdued – a period in which South Africa, Benin, Madagascar, and Malawi would have held elections. “We could see companies not making big investments until the elections are completed.” According to Refinitiv’s figures, the value of announced M&A transactions with any sub-Saharan African involvement reached $8.8 billion during the first quarter of 2019, up 41% from the same period last year. This was thanks to the conclusion of Naspers’ spinoff of its pay-TV business MultiChoice on to the JSE.

He said South Africa has always been viewed as a complex country by foreign investors, but recent political and policy events have upped the ante on its risk. Talks to expropriate land without compensation, systemic corruption in the public and private sector, the deterioration of public finances, an economy that is stubbornly stuck at a less than 2% annual rate, and the insolvency of state-owned enterprises are some of the issues rattling investors.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Activists Push South Africa Pension Funds Over Climate CostsPension funds in South Africa have a legal obligation to account for the financial effects of climate change on their investments, according to two groups lobbying money managers to pay closer attention to the issue.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: Africa is being left out of the digital tax loopIt’s a tricky issue. Tech companies are able to operate internationally very effectively, zooming down fibre optic cables from their tax havens. Should they be taxed in a different way? It’s now a leading topic on the global agenda, and African tax experts are hustling to join the discussions. Governments around the world have proposed varying solutions. Africa, however, is not necessarily happy with the progress, but potential solutions are out there. Very interesting piece DURITZ79
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: South Africa’s Rand Held Back by Political Uncertainty, IMF SaysPolitical uncertainty is probably depressing the value of South Africa rand, according to the head of the International Monetary Fund’s Africa department.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: A good cop-bad cop approach to the world’s, and South Africa’s, economic growthThe world economy is at a crossroads, with the IMF warning of a synchronised downturn this year but pointing to a 2020 turnaround if policymakers get it right. However, it will take more than playing the good cop to get there, for South Africa in particular. Policymakers will also need to play the bad cop if they want to gear countries for the deeper structural changes underway and too important to be ignored.
Source: dailymaverick - 🏆 3. / 84 Read more »