Cash shifting overseas at a rate not seen since the end of Apartheid

The amount of money flowing out of South Africa has entered its longest run since 1999.

According to central bank data, South African investors are shifting cash overseas at the most-sustained pace since outflows triggered by the end of apartheid as political upheaval undermines confidence in the continent’s second-biggest economy.

Money was left the country for the 16th consecutive quarter in the final three months of 2015, the longest streak of quarterly outflows since the five years through September 1999.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd discusses this trend.

We noticed a very big change last year, when we began seeing outflow growing exponentially versus the inflows.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd

It really started to run in the third quarter, when talks of a downgrade and Nkandla became the big issue, and then the Nene debate was the final straw, and we saw a big surge in December

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd

Such sustained rand outflow from South Africa have not been witnessed in decades.

I refer to it as the perfect storm, and a perfect storm that has been going on for a while. it is not just the politics, it is also emerging markets, and the other big issue is commodities. Those are the three issues.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd

Rissik says that commodity prices have possibly reached the bottom of the cycle and will start an upturn, though it is hard to predict when exactly. Also, he says a lot of this is a result of the rand being undervalued.

There are some positive signs, he says, with the Constitutional Court ruling and other actions being taken to stabilise things politically.

It has definitely been an overreaction, and devaluation was indicative of that. And sadly most individuals panic.

Andrew Rissik, Managing Director of foreign-currency trading at Sable Group Ltd
Read More
How to delegate (and why you must, whether you like it or not)

How to delegate (and why you must, whether you like it or not)

The Money Show’s Bruce Whitfield interviews Aurik Business Accelerator’s Pavlo Phitidis.

Our investigations conclude is wasn’t us – Dracore on SA’s biggest data breach

Our investigations conclude is wasn’t us – Dracore on SA’s biggest data breach

The Money Show’s Bruce Whitfield interviews Dracore Data Services CEO Chantelle Fraser.

Where to invest? Property vs 'a small business' vs 'an investment fund'...

Where to invest? Property vs 'a small business' vs 'an investment fund'...

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

Estate agent Aida admits it’s the source of SA’s largest data hack ever

Estate agent Aida admits it’s the source of SA’s largest data hack ever

The Money Show’s Bruce Whitfield interviews Stuff magazine’s Toby Shapshak.

Going to be hard to look the other way - Steven Powell on FBI probing Guptas

Going to be hard to look the other way - Steven Powell on FBI probing Guptas

Bruce Whitfield interviews Peter Hain (Wits Business School) and Steven Powell (Director in Forensics at ENS Africa).

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

The Money Show’s Bruce Whitfield interviews the former CEO of Africa’s largest retailer by far.

Popular articles
Estate agent Aida admits it’s the source of SA’s largest data hack ever

Estate agent Aida admits it’s the source of SA’s largest data hack ever

The Money Show’s Bruce Whitfield interviews Stuff magazine’s Toby Shapshak.

UCT engineering student creates affordable grey water system

UCT engineering student creates affordable grey water system

Nkosinathi Nkomo came up with a system that could turn grey water into usable water amidst the Cape Town water crisis.

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

Meet Whitey Basson (the retail guru who turned Shoprite into a R127bn behemoth)

The Money Show’s Bruce Whitfield interviews the former CEO of Africa’s largest retailer by far.

CT airport shooting attempted hit on gang boss allegedly linked to '28s' -expert

CT airport shooting attempted hit on gang boss allegedly linked to '28s' -expert

A policing expert explains that the airport shooting may be linked to the shooting at a Stellenbosch nightclub this past weekend.

Almost 30 million SA ID numbers compromised after site hacked

Almost 30 million SA ID numbers compromised after site hacked

Independent Marketing Consultant in the Technology Space, Andrew Fraser says this looks like a leak and not a hack.

Cape Town International Airport shooting could be gang related - ACSA

Cape Town International Airport shooting could be gang related - ACSA

The incident happened in the early hours of Wednesday morning.