South Africa Economy

THE COMPANY: FirstRand is the third-largest South African bank in terms of balance sheet size, holding total assets of R979bn ($84.6bn) at December 31, 2014. It operates three primary brands: First National Bank, which has a retail and commercial focus; Rand Merchant Bank, which competes in the...

The capital markets in South Africa are defying the economy they are situated in, indeed emerging markets as a whole. While economic growth is sluggish, stock prices are rising, and hitting new highs, and a record number of offerings are being issued to the public. Technical and regulatory improvements at the Johannesburg Stock Exchange (JSE)...

In recent years South African companies, especially financial institutions, have harboured international ambitions, focusing on Europe and other developing markets. However, they are now starting to look closer to home.

One of the major factors holding economic growth back in South Africa is power shortages. While Eskom, the public utility, has 45,000 MW of capacity, an estimated one-third of this is currently out of commission due to a combination of scheduled maintenance and unexpected breakdowns.

South Africa’s economy has experienced relatively slow growth in recent years, and GDP has not risen by the rates seen prior to the global financial crisis of 2008-09. The country is suffering from the same global trends as many other developing markets, with falling commodity prices and the threat of rising interest rates taking their toll....

Understanding South Africa’s history is integral to making sense of its current political and economic issues. From the first arrival of Dutch colonists in the 1600s through to the early 1900s, European colonials treated South Africa’s indigenous majority as second-class citizens at best and slave labour at worst. This arrangement continued...