Investec CEO Fani Titi said that poor management, corruption, and the overall failures of Eskom and Transnet would keep South Africa in crisis unless the government makes some difficult decisions,According to Titi, businesses are being impacted more by the challenges around state-owned entities than by increases in interest rates.
“Interest rates have gone up probably 250 to 300 basis points. We are back to where rates were just pre-Covid. Our clients have been able to conduct business at these rates. More increases are expected, but this will be tolerable in the South African environment,” he said. Titi also noted that Transnet is equally detrimental to South Africa’s economy, stating that the freight rail company is becoming a constraint in terms of the ports and rail, said the Sunday Times.