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This week, Business Leadership SA (BLSA) released snippets of its research report, compiled by economic consultancy Quantec Research, stating that it was intended to prove that its members are not on an investment strike.
BLSA CEO Bonang Mohale countered accusations that the organisation was flexing its muscles and showing how much influence its members had, saying that, instead, it was trying to determine the exact contribution rendered by its members to the economy.
Mohale said that, like a previous report, compiled by Intellidex in September, this latest one by Quantec was intended to dispel myths about business’ disinterest in the economy.
“The country was starting to believe alternative facts. So, we paid Intellidex to trace the cash position of companies over a period of time. Its findings proved that business was not on an investment strike.
“In South Africa, the research says, if you put in a rand in mining as an investment, the return is about 57c. You get less than what you invested ... So, investors are moving from mining to other businesses.”
In announcing the results of the Quantec report, the BLSA made only brief statements. It undertook to make the report available to City Press, but did not deliver.
The Intellidex report showed that JSE-listed mining and industrial companies’ cash holdings had nominally increased by 400% since 2007, from R154 billion to R775 billion last year. Contributing factors included a decade’s worth of inflation and the weakening rand, said Intellidex.
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