Considering our peers – as seen by international investors – South Africa probably stands out as one of the more stable countries, according to Old Mutual Wealth Investment Analyst Izak Odendaal.
Consider the following examples:
In Italy, the opposition party is headed up by a comedian.
Far-right parties are gaining ground in France and Austria.
In the US, property tycoon and reality TV star Donald Trump secured the presidential nomination of the Republican Party.
Voters in the United Kingdom unexpectedly chose to leave the European Union after four decades, putting the pound in a tailspin and causing massive economic uncertainty.
Russia under Putin has become less free and more authoritarian, and more of a meddler in international affairs. Its economy is in recession for the second year following the collapse of the oil price and the imposition of international sanctions.
Fellow Brics (Brazil, Russia, India, China, South Africa) member Brazil is suffering the worst recession in decades, partly as a result of political problems. Runaway government spending under Former President Dilma Rousseff contributed to a collapse in the currency and spikes in interest rates, but this could not be contained because of political deadlock worsened by an epic corruption scandal involving many politicians, well-known businessmen and the country’s largest company, Petrobras.
A few weeks ago Turkey suffered an attempted coup.
Thailand is currently under military rule, after the 12th coup in 80 years.
- In Malaysia, US$681 million (almost R10 billion or 40 Nkandla upgrades) from the sovereign wealth fund found its way into Prime Minister Najib Razak’s personal bank account. He was cleared of wrong-doing by his own government, but US authorities are now investigating money laundering.
South Africa’s institutions are a key strength, according to Odendaal.
The International Monetary Fund’s deputy Managing Director, David Lipton said in a recent speech in Johannesburg that South Africa “should be proud of its world class public institutions”, including the judiciary, the Public Protector and the Auditor General, that were “the envy of many emerging market and developing countries”.
The strength of our political, economic and legal institutions was also recently highlighted by ratings agencies Fitch, Moody’s and S&P Global when they left South Africa’s investment grade credit rating unchanged.
Regular free and fair elections are a cornerstone of a functioning democracy and South Africa now has a solid track record in this regard.
The Money Show’s Bruce Whitfield interviewed Odendaal.
Scroll down for quotes from the audio below.
There is an element of disenchantment with political elites all over the world.— Izak Odendaal, Old Mutual Wealth
The assumption that China will become more open and democratic as it grows richer hasn’t panned out.— Izak Odendaal, Old Mutual Wealth
This is an opportunity for us to show the world that we’re a mature democracy.— Izak Odendaal, Old Mutual Wealth
Local elections typically do not influence fiscal policy. But this is a different kind of election, because it’s the first time the ANC is under pressure.— Izak Odendaal, Old Mutual Wealth
Recommendedby THE NEWSROOM
The Money Show’s Bruce Whitfield interviews De Klerk.
This and other insights on fintech from Rand Merchant Investments Senior Investment Executive Dominique Collett.
Bruce Whitfield interviews EWN’s Lindsay Dentlinger and journalist Craig McKune (amaBhungane Centre for Investigative Journalism).
Ad guru Andy Rice slams H&M for its full-page apology. He praises a funny, anti-drug billboard from the United States.
The Money Show’s Bruce Whitfield interviews K about his attitude to money (hopes and fears, successes and failures, etc.)
Feroz Basa (Old Mutual Investment Group) reviews “Unshakeable: Your Financial Freedom Playbook” by Tony Robbins.
Revelations published today show how the premier's sons and Free State govt appear heavily involved in the Gupta-owned companies.
The EFF lawyer stole the show during the state capture report court battle.
Flux Trends founder Dion Chang gives five reasons why he believes getting a degree is past its sell by date.
WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...
Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?
The National Student Financial Aid Scheme (NSFAS) will pilot a new funding model in 2017. NSFAS chairperson Sizwe Nxasana explains.