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Finweek - English

Finweek - English 6/11/2021

Finweek is South Africa’s leading financial weekly magazine focusing on investment. With its brisk, creative and authoritative analysis of business and investment issues, it’s an essential business tool in the daily battle for competitive advantage. Today's business decision-makers have to cope with increased pressure on their time and are expected, more than ever before, to succeed in the face of stiffer competition. Finweek provides relevant information in quick bytes, along with award-winning investment advice.

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South Africa
Media 24 Ltd
25 Issues

in this issue

3 min
from the editor

making a quick scan of this finweek edition, local investors have taken the offshore diversification of their investment portfolios to heart. And to no surprise – with less than 400 shares listed on South Africa’s stock exchanges, compared with a global universe of around 630 000 publicly listed companies. Benchmarks, such as the MSCI All Country World Index, tracks more than 3 000 stocks in 23 developed and 27 emerging markets. When one drills down into sectors or themes of investments, the choices listed on offshore markets become legion. Take healthcare for example: There are indices tracking these stocks by geography and market cap. The S&P Emerging BMI Healthcare (Sector) Index tracks 374 constituents in emerging markets and returned 17.6% in dollars during the first five months of the year. Another…

5 min
the future of the property market

covid-19 has affected the way we consume and invest in profound ways, but many would argue that it is the property market that has seen the biggest disruption. A new research paper, by Sitian Liu and Yichen Su, shows that the pandemic has led to a substantial shift in housing demand in the US, away from neighbourhoods with high population density. They also find that neighbourhoods with high home values before the pandemic see a greater drop in housing demand. Big cities lost; smaller cities gained. But it is not just demand that has shifted. On the supply side, Covid also gave rise to new innovations. Neighbourgood is a next generation South African developer and operator of modern homes and workspaces. Founded just after hard lockdown last year, Neighbourgood repurposes hotels,…

1 min
“the high and rising level of public debt is exposing the financial sectorto both credit and market risk.”

– South African Reserve Bank governor, Lesetja Kganyago, warned that though there have always been large dependencies between the financial sector and government, a few key developments, such as the rising level of public debt, have reinforced emerging financial stability risk. Speaking at the Financial Stability Forum, Kganyago warned that the upsurge in government debt is also weighing on the perceived creditworthiness of the financial sector, and that government’s borrowing requirements and spending patterns are putting upward pressure on domestic interest rates.…

1 min
“we are not asking for aid or funding. we will invest ourselves.”

– Stephen Saad, CEO of Aspen, said the company plans to expand its manufacturing capabilities to improve access to vaccines in Africa, and is seeking assurances on technology transfers and assistance with licenses, during a seminar hosted by President Cyril Ramaphosa and French President Emmanuel Macron. Macron said that France was in favour of lifting hurdles to allow vaccine production on the continent and already has a partnership with SA’s Biovac Institute and would soon start a project with Aspen. Saad said he wants Africa “to lessen its reliance of being an importer of 99% of all its vaccines”.…

1 min
“whether it emerged from human contact with an infected animal or from a laboratory accident.”

– US President Joe Biden directed the US intelligence community to redouble their efforts in investigating the origins of the Covid-19 pandemic and report back to him in 90 days. Biden said the US intelligence community has “coalesced around two likely scenarios” but has not reached a definitive conclusion on this question, in a statement released by The White House. The announcement comes after a US intelligence report found several researchers at China’s Wuhan Institute of Virology fell ill in November 2019 and had to be hospitalised.…

3 min
double take

THE GOOD Germany said that it would ask its former colony, Namibia, for forgiveness for what it now recognises was a genocide of the local Herero and Nama people committed by its troops between 1904 and 1908. As part of the official recognition, Germany will pay €1.1bn, equivalent to R18.5bn, for reconstruction and development projects in Namibia as a “gesture of recognition of the immeasurable suffering that was inflicted on the victims,” German foreign minister Heiko Maas said. The sum, which, according to a spokesman for Namibia’s president, could be paid out over 30 years. THE BAD According to the Daily Maverick’s investigative unit, Scorpio, a R150m contract between the health department and communications agency Digital Vibes was allegedly irregular. Among the findings were a conflict of interest and contravention of the tender…