South Africa’s struggling economy was dealt a new blow on Thursday as business confidence plummeted to a 20-year low in the third quarter, while the SA Reserve Bank (Sarb) said it did not expect growth to exceed 0.6 percent this year.
Pressure from the business community is mounting for the government to announce expenditure cuts in October’s Medium-term Budget Policy Statement in an effort to arrest the unravelling of the country’s economy.
Aspen Pharmacare aims to further reduce net borrowings in 2020 to achieve positive free cash flows and significantly reduced deferred payables, the group announced at its annual results presentation on Wednesday.
A study by PricewaterhouseCoopers (PwC) has shown that a focus on digital strategies helped South Africa’s four major banks to deliver resilient growth, posting combined headline earnings of R42.49 billion for the period ended in June despite a challenging operating environment.
The materially higher tax burden on South Africans has been cited as one of the key factors behind the decline in the country’s business confidence index (BCI) and a consumption-led recovery is not anticipated for South Africa.
The rand traded on the front foot during the early European session as global risk appetite was boosted by expectations that the ECB will announce a comprehensive easing package at Thursday’s rate-setting meeting, although the South African unit succumbed to pressures exerted by negative domestic releases later during the trading session according to NKC Research.