See More

Marcus: SA outlook deteriorating rapidly

Oct 10 2012 11:51 Reuters

Related Articles

SA should adjust policy stance - Marcus

Marcus warns on joblessness

Marcus puts lid on rate cut speculation

Marcus: SA has a lot going for it

Rates decision wasn't easy - Marcus

Rand tumbles to near R9/dollar


Grahamstown - South Africa's economic outlook is deteriorating rapidly with unrest in the mining sector and national transport strikes likely to lead to job losses, Reserve Bank governor Gill Marcus said on Wednesday.

Speaking to economics students in Grahamstown in the Eastern Cape province, Marcus reiterated her stance that the central bank had no target level for the rand.

A heavy fall in the currency on Monday to within a whisker of R9.0 to the dollar had prompted market speculation of official intervention.

Two months of violent, wildcat walkouts in gold and platinum mines, including the police killing of 34 strikers at Lonmin's Marikana mine on August 16, have hurt South Africa's international investment reputation, Marcus said, citing R5.6bn in net equity market outflows on Monday as evidence.

"That's an indicator of a loss of confidence. It's a huge indicator for us of loss of confidence," Marcus said.

"The outlook at the moment is deteriorating rapidly and if you look at the deficit of confidence, it is one of the reasons why it's very difficult to find a resolution," she said.

Besides the mining problems, a strike by more than 20 000 truckers has entered its third week, hitting fuel supplies around Johannesburg and affecting production at some car plants on the south coast.

Talks between the main transport union, Satawu, and freight employers broke down on Tuesday. The transport strike is due to widen next week with a one-day "sympathy" stoppage by port and railway workers.

* Follow Fin24 on Twitter and Facebook.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

This is the most expensive burger in the world!

You won't believe how much someone was prepared to pay for this burger!


Luxury living

Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!
These are the richest people on the planet!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote