Cash shifting overseas at a rate not seen since the end of Apartheid

The amount of money flowing out of South Africa has entered its longest run since 1999.

According to central bank data, South African investors are shifting cash overseas at the most-sustained pace since outflows triggered by the end of apartheid as political upheaval undermines confidence in the continent’s second-biggest economy.

Money was left the country for the 16th consecutive quarter in the final three months of 2015, the longest streak of quarterly outflows since the five years through September 1999.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd discusses this trend.

We noticed a very big change last year, when we began seeing outflow growing exponentially versus the inflows.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd

It really started to run in the third quarter, when talks of a downgrade and Nkandla became the big issue, and then the Nene debate was the final straw, and we saw a big surge in December

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd

Such sustained rand outflow from South Africa have not been witnessed in decades.

I refer to it as the perfect storm, and a perfect storm that has been going on for a while. it is not just the politics, it is also emerging markets, and the other big issue is commodities. Those are the three issues.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd

Rissik says that commodity prices have possibly reached the bottom of the cycle and will start an upturn, though it is hard to predict when exactly. Also, he says a lot of this is a result of the rand being undervalued.

There are some positive signs, he says, with the Constitutional Court ruling and other actions being taken to stabilise things politically.

It has definitely been an overreaction, and devaluation was indicative of that. And sadly most individuals panic.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd
Read More
How to create more time (and how to spend it wisely)

How to create more time (and how to spend it wisely)

Make no mistake; strategizing to grow your business takes time. Yet, few business owners seem to have enough of it.

Some investments are more attractive after Budget 2017 (some not so much)

Some investments are more attractive after Budget 2017 (some not so much)

Personal Financial Advisor Warren Ingram gives advice on where to put your money; considering changes brought by Budget 2017.

Cricket SA guns for international superstars to play in new #T20 Global League

Cricket SA guns for international superstars to play in new #T20 Global League

Best. News. EVER! South Africa is getting its own global T20 league. Bruce Whitfield interviews Cricket SA CEO Haroon Lorgat.

Budget 2017 and tax: The good (there is some), the bad and the ugly

Budget 2017 and tax: The good (there is some), the bad and the ugly

The Money Show’s Bruce Whitfield interviews TaxTim cofounder Marc Sevitz.

Meet Zibusiso Mkhwanazi; CEO of “Digital at the core marketing agency” AVATAR

Meet Zibusiso Mkhwanazi; CEO of “Digital at the core marketing agency” AVATAR

Mkhwanazi – son of an entrepreneur – founded a web design firm (Csonke.com) with R2000 when he was 17 and still in school.

5 most important ways Budget 2017 will tighten your belt for you

5 most important ways Budget 2017 will tighten your belt for you

The Money Show's Bruce Whitfield interviews Personal Finance Journalist Maya Fischer-French.

Popular articles
Police shoot at crowd of immigrants with rubber bullets (arrests 136 people)

Police shoot at crowd of immigrants with rubber bullets (arrests 136 people)

"As we speak there’s another standoff in Sunnyside, " says EWN's Barry Bateman.

10 sexting tips on how to keep things spicy (and safe)

10 sexting tips on how to keep things spicy (and safe)

Interested in sexting but worried about the risks? Dr Eve has created a guideline to help you 'sext' in a fun and responsible way.

Vaal Dam about to reach 100% capacity

Vaal Dam about to reach 100% capacity

A few months ago the dam was only 27% full.

Letters show Moyane refuses to account to Gordhan, turns to Zuma to intervene

Letters show Moyane refuses to account to Gordhan, turns to Zuma to intervene

M&G reports that Sars Commissioner Tom Moyane declared an intergovernmental dispute against Finance Minister Pravin Gordhan.

Violence breaks out in Atteridgeville amid #XenoMarch

Violence breaks out in Atteridgeville amid #XenoMarch

Tensions are high in Atteridgeville as a group calling itself Mamelodi Concerned Residents prepares to march against immigrants.

Where is that corrupt bastard? - EFF MP to Brian Molefe

Where is that corrupt bastard? - EFF MP to Brian Molefe

Former Eskom CEO Brian Molefe was sworn in as a Member of Parliament replacing Abram Mudau this week.

New transfer cost threshold an unwise move - property expert

New transfer cost threshold an unwise move - property expert

What does the Finance Minister's announcement on transfer duty threshold really mean for home buyers?

'Engrish' never loved us: 30 words listeners struggle to pronounce

'Engrish' never loved us: 30 words listeners struggle to pronounce

Worcestershire or "Wooster" sauce? The Queen's language can be over-rated and hard to get right! Listeners chuckle at themselves.

Budget 2017 and tax: The good (there is some), the bad and the ugly

Budget 2017 and tax: The good (there is some), the bad and the ugly

The Money Show’s Bruce Whitfield interviews TaxTim cofounder Marc Sevitz.