{"id":158195,"date":"2017-02-16T14:20:28","date_gmt":"2017-02-16T12:20:28","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=158195"},"modified":"2017-02-16T14:20:28","modified_gmt":"2017-02-16T12:20:28","slug":"foreign-investors-have-pulled-billions-out-of-sa-thanks-to-government","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/158195\/foreign-investors-have-pulled-billions-out-of-sa-thanks-to-government\/","title":{"rendered":"Foreign investors have pulled billions out of SA thanks to government"},"content":{"rendered":"<p>Financial research group, <strong><a href=\"http:\/\/www.sharenet.co.za\/views\/Cost-Of-Bad-SA-Governance-R286-Billion\/ed2780d01f610ba87d4538f389f98cab\" target=\"_blank\">Powerstocks <\/a><\/strong>has released a set of graphs showing\u00a0a mass exodus of international investors from the JSE.<\/p>\n<p>&#8220;Since the September 2013 foreign-flows peak\u00a0&#8211; achieved two months before SA fell into a business cycle recession\u00a0&#8211;\u00a0<strong>foreigners have dumped an unprecedented net R286 billion<\/strong> in SA equities and government bonds,&#8221; said Dwaine van Vuuren, CEO of\u00a0Powerstocks.<\/p>\n<p>&#8220;JSE shares accounted for 74% of the outflows which brings the <strong>total rolling annual (12-month) outflows to R163 billion<\/strong>,&#8221; he said.<\/p>\n<p>Van Vuuren specifically noted that while emerging markets have experienced outflows within the last few years,\u00a0these have been isolated to China. In fact, emerging markets as a group have\u00a0<strong>experienced inflows for every quarter<\/strong> since the end of the financial crises in 2009.<\/p>\n<p>According to van Vuuren, the majority of the money lost by South Africa could have been prevented as they were primarily caused by factors well within the country&#8217;s control.<\/p>\n<p>He cited the following eight reasons why international outflows had increased so drastically, based on factors cited by international ratings agencies.<\/p>\n<ul>\n<li>SA\u2019s working age population is growing faster than its economy, and unemployment is at 13-year highs and growing.<\/li>\n<\/ul>\n<ul>\n<li>The SA economy is going nowhere, and its growth rate is far below its African and EM averages.<\/li>\n<\/ul>\n<ul>\n<li>Government finances are perilous &#8211; its debt is at record levels and growing, State owned enterprises (SOE\u2019s) are bleeding us dry and corruption\/wasteful expenditure is widespread and unchecked.<\/li>\n<\/ul>\n<ul>\n<li>Lack of clear policies across various sectors has led to a plunge in confidence and a widespread private sector investment strike.<\/li>\n<\/ul>\n<ul>\n<li>Government, business and\u00a0labour are focussing on narrow self-interests instead of working together in unison for the best of the country as a whole.<\/li>\n<\/ul>\n<ul>\n<li>Most interventions by the government in the economy are focused on regulation and red tape, as opposed to growth enhancement and confidence building.<\/li>\n<\/ul>\n<ul>\n<li>Protracted political tensions generate policy uncertainty and impede structural reforms.<\/li>\n<\/ul>\n<ul>\n<li>The economy has failed to benefit from the collapsing rand (the rand is no longer a traditional shock-absorber).<\/li>\n<\/ul>\n<p>The graphs below outline outflows over the past 12 months<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/Equity.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-158235 size-full\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/Equity.png\" width=\"483\" height=\"290\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/Equity.png 483w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/Equity-300x180.png 300w\" sizes=\"auto, (max-width: 483px) 100vw, 483px\" \/><\/a><\/p>\n\n\t\t<style type=\"text\/css\">\n\t\t\t#gallery-1 {\n\t\t\t\tmargin: auto;\n\t\t\t}\n\t\t\t#gallery-1 .gallery-item {\n\t\t\t\tfloat: left;\n\t\t\t\tmargin-top: 10px;\n\t\t\t\ttext-align: center;\n\t\t\t\twidth: 25%;\n\t\t\t}\n\t\t\t#gallery-1 img {\n\t\t\t\tborder: 2px solid #cfcfcf;\n\t\t\t}\n\t\t\t#gallery-1 .gallery-caption {\n\t\t\t\tmargin-left: 0;\n\t\t\t}\n\t\t\t\/* see gallery_shortcode() in wp-includes\/media.php *\/\n\t\t<\/style>\n\t\t<div id='gallery-1' class='gallery galleryid-158195 gallery-columns-4 gallery-size-thumbnail'><dl class='gallery-item'>\n\t\t\t<dt class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/businesstech.co.za\/news\/finance\/158195\/foreign-investors-have-pulled-billions-out-of-sa-thanks-to-government\/attachment\/jse-01\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-01-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-01-150x150.png 150w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-01-50x50.png 50w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\n\t\t\t<\/dt><\/dl><dl class='gallery-item'>\n\t\t\t<dt class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/businesstech.co.za\/news\/finance\/158195\/foreign-investors-have-pulled-billions-out-of-sa-thanks-to-government\/attachment\/jse-02\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-02-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-02-150x150.png 150w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-02-50x50.png 50w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\n\t\t\t<\/dt><\/dl><dl class='gallery-item'>\n\t\t\t<dt class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/businesstech.co.za\/news\/finance\/158195\/foreign-investors-have-pulled-billions-out-of-sa-thanks-to-government\/attachment\/jse-03\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-03-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-03-150x150.png 150w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-03-50x50.png 50w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\n\t\t\t<\/dt><\/dl><dl class='gallery-item'>\n\t\t\t<dt class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/businesstech.co.za\/news\/finance\/158195\/foreign-investors-have-pulled-billions-out-of-sa-thanks-to-government\/attachment\/jse-04\/'><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-04-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-04-150x150.png 150w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/02\/JSE-04-50x50.png 50w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\n\t\t\t<\/dt><\/dl><br style=\"clear: both\" \/>\n\t\t<\/div>\n\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/business\/153875\/nandos-could-be-heading-to-the-stock-market-report\/\" target=\"_blank\">Nando\u2019s could be heading to the stock market: report<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial research group, Powerstocks has released a set of graphs showing a mass exodus of international investors from the JSE.<\/p>\n","protected":false},"author":10,"featured_media":52419,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26,11783],"class_list":["post-158195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline","tag-powerstocks"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/158195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=158195"}],"version-history":[{"count":19,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/158195\/revisions"}],"predecessor-version":[{"id":158273,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/158195\/revisions\/158273"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/52419"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=158195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=158195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=158195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}