Growth slowed by ANC infighting, warns Fitch

South Africa’s economic growth will be significantly hampered by increasing political uncertainty in the run-up to the ruling African National Congress’ leadership contest in December, Fitch said yesterday.

In a report released by its BMI research arm, Fitch said a turn to more “radical rhetoric and policy positions by the traditionalist wing of the party” would weigh on investor confidence.

“Mining and manufacturing are likely to be hit especially hard, as the elevated policy uncertainty stymies much-needed investment,” Fitch said in the report.

SA’s economy contracted in the last quarter of 2016 and the first of 2017 before recording marginal growth in the second quarter. Average expansion is forecast at 1% for the next three years.

Fitch and S&P Global Ratings both downgraded South Africa’s foreign-currency rating to speculative grade, or junk, following an abrupt cabinet reshuffle in March that saw Pravin Gordhan axed as finance minister by President Jacob Zuma. – Reuters

Moneyweb

Choice Lifestyle Change, which says it provides opportunities in the bridging finance market, offers clients returns of up to 15%/month. It operates in Polokwane and Gansbaai, and claims to be supporting a Christian outreach initiative.

The nature of the scheme, run by Maarten Stapelberg in the Western Cape and Wouter Botha in Limpopo, however raises serious concerns about its legitimacy.

“My occupation is that of a bond originator. I have a list of clients. If people need money they contact me for the interim, maybe a week or two weeks, then I contact my clients and tell them what is available and they can partake in providing security,” Stapelberg said.

Choice claims to be only connecting people who need money with others offering it, like a peer-to-peer exchange. But here’s where what Choice does gets blurry, as Stapelberg says no loans are given, only guarantees.

“… Once you are a member you will receive an e-mail with opportunities