By Alec Hogg
Unlike many who live inside the country’s borders, I pay close attention when global investors talk about South Africa. As a capital-starved developing country, SA needs foreign investment to balance it books and must attract billions more to fund long-term projects that promote growth.
Without foreign capital, SA’s open and growth dependent economy will soon implode. A harsh reality which the Apartheid government learnt in the late 1980s – and Zimbabwe is going through right now.
Japanese financial giant Nomura's Emerging Markets expert Peter Attard Montalto.
Fresh from a trip to the country, London’s leading SA-watcher Peter Attard Montalto sent out a note to Nomura’s clients yesterday where he maintains last week’s SONA met the low expectations of investors. Montalto, like his audience, is pragmatic. To his credit, he has accurately called the SA story for some months.
The Nomura emerging markets specialist does caution, however, that longer-term risks a...