Hits & Misses

FDI shines brightly but no light at the end of loadshedding tunnel

FOREIGN

direct investment (FDI) more than doubled last year to a five-year high, giving President Cyril Ramaphosa’s investment initiative a much-needed boost. FDI increased from R26.8bn in 2017 to R70.7bn, according to the Reserve Bank’s Quarterly

Bulletin.

Ramaphosa has said he aims to attract $100bn in investment to SA by 2023.

CONSUMER

inflation accelerated slightly in February to 4.1% year on year, remaining below the mid-point of the Reserve Bank’s target range of 3%-6%. Core inflation, which strips out volatile items such as fuel, rose 4.4%, unchanged from the previous month, Stats SA said.

SA

has the largest travel and tourism sector in Africa, contributing about R426bn to the local economy in 2018. According to new research by the World Travel and Tourism Council, the sector is responsible for 1.5-million jobs, or 9.2% of total employment in SA.

PUBLIC

enterprises minister Pravin Gordhan said he does not know when rolling blackouts will end, as Eskom struggles with capacity shortages. About 17,000MW of the utility’s installed capacity of 45,000MW was unavailable, he said.

ALUMINIUM

supplier Hulamin, which counts Tesla as a customer, says it has reduced the value of some of its assets by a combined R1.5bn, despite achieving record sales volumes in 2018. It said its weighted average cost of capital had gone up amid mounting uncertainty and risk in the trading environment, and this resulted in “material changes to the valuation of assets”.

CONFIDENCE

in the agricultural industry improved from the worst reading since 2009 in the first quarter but lingered at levels that indicate producers are still downbeat. The Agbiz/IDC agribusiness confidence index rose to 46 against 42 in the prior quarter, the Agricultural Business Chamber said.