What does impeachment against Brazil president mean for South Africa?

How does the political turmoil in Brazil affect South Africa with both developing nations having close ties through the BRICS group?

The Latin American country's president, Dilma Rousseff , has been removed for breaking budgetary laws in an impeachment process that has polarised the nation.

702's John Robbie spoke to investment analyst at Old Mutual Wealth, Izak Odendaal, about how the matter.

He said that there are many similarities between both countries with high levels of inequality, a dependence on extracting resources and are both young democracies.

The commodity cycle has turned very much against countries like South African and Brazil...What it exposed in Brazil is that the development was fueled by credit.

Izak Odendaal, Old Mutual Wealth

Despite the volatility in the rand, despite the volatility in the oil prices, despite the volatility in food prices, the inflation rate has stuck around more or less 6%.

Izak Odendaal, Old Mutual Wealth

Listen to the conversation below:


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