Predictions, threats & opportunities from Risk Series experts
In April, Econorisk partnered with Citadel in Johannesburg to host the April Breakfast #RiskSeries. Politico-economic trend analyst, JP Landman, and Citadel’s Head of Fund Research and Portfolio Manager, Yolanda Naudé considered the threats and opportunities facing global and local economies. In part 1, JP Landman takes a look at what South Africa needs to do in order to achieve economic growth success.
- KEY TAKE-OUT
The top-line from JP Landman’s presentation:
- The real end game to success = moving SA from traditionalism to modernity (politico-economically speaking).
Two pillars of success
- ‘Get richer’ by growing our economy i.e. rising per capita incomes.
- A dynamic ‘open society’ – curbing government power; having checks and balances in place.
Five golden rules on how to increase growth
- Rule 1: High savings and investments:
- Zero points on that score for South Africa.
- Rule 2: A committed, capable and credible government:
- South Africa scraped together half a point on this rule
- Thanks only to the relief of the last few months under our new President
- Rule 3: Using the market system to allocate resources:
- The country is possibly halfway to achieving this.
- Rule 4: South Africa scored for having a stable macro-economic environment
- Rule 5: Embrace the world!
- When it comes down to what our country is offering to sell;
- and whether we are ticking the right boxes regarding what the world actually wants;
- then South Africa scores strongly (eg. tourism).
International Growth Panel’s scorecard for South Africa: Under President Cyril Ramaphosa, the score has improved to 3 ½ out of 5
Part 2: Citadel’s Head of Fund Research and Portfolio Manager, Yolanda Naudé on global and local economies, and financial markets.
