Flash Briefing: Rand a star performer, Ramos appointed Chair at AngloGold, SA GDP climbs

By Melani Nathan 

• After a year that has brought the South African economy to its knees, Gross Domestic Product is starting an arduous climb back up to pre-Covid-19 levels. The numbers look encouraging but the economy has a long way to go before it recovers what was lost during lockdown. South Africa's economy rebounded in the third quarter of 2020, as COVID-19 lockdown restrictions eased, allowing economic activity to resume. All industries recorded an increase in activity compared with the second quarter, with manufacturing, trade and mining leading the recovery. Gross domestic product (GDP) grew by an estimated 13.5% in the third quarter, giving an annualised growth rate of 66%. This follows the significant drop of 16.6%  in the second quarter during the most restrictive months of the lockdown. StatsSA says South African industries still have a long way to go before recovering to levels of production seen before the pandemic. Despite the rebound, the economy is still 5.8% smaller than it was at the end of 2019.
• Ex-Absa boss Maria Ramos has been appointed chairwoman at AngloGold Ashanti. Ramos is replacing Sipho Pityana who left the company shortly after ex Chief Executive Officer Kelvin Dushnisky. In its statement, the company acknowledged Pityana's contribution during his tenure. "Mr Pityana has chaired the Board over a time when AngloGold Ashanti has followed a clear strategy characterised by strict capital discipline and improved sustainability of its business." Ramos has extensive experience in the private and public sectors. Her name recently appeared on a list of officials and associates who have been spending taxpayers' money, despite changes to government's travel regulations. AngloGold says it is pleased to have Ramos' leadership experience behind its executive management team.
• Sygnia has been in the spotlight recently as its CEO Magda Wierzycka has been vocal about her opposition to Asisa's lobbying against regulations that would allow local investors to increase their offshore exposure. The company has released its annual results for 2020. With all key performance indicators in the green, it says it is pleased with the growth it has achieved despite significant challenges. Assets under management and administration are up 5.6%. Revenue increased 30% and profit after tax of R206m is up 63.7%.
• For the second consecutive month the rand is one of the top performers for emerging market currencies, strengthening by 7% against the US dollar. Since its low in April, the rand has gained 25% against the US dollar and has shaken off any negative effects of sovereign credit downgrades, says Bloomberg.

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