Navigating Emerging Markets: South Africa

The video discusses the economic challenges faced by South Africa during and after Jacob Zuma's presidency, focusing on the Rand's fluctuations, land reform issues, and the need for foreign investment. It highlights the efforts of President Ramaphosa to restore confidence and attract investment by enacting structural reforms. The discussion also covers the progress made by the new government in improving management and transparency, and the potential investment opportunities in South Africa's bond market.

What major event led to the strengthening of the Rand during Jacob Zuma's presidency?

• His initial election in 2009

• The sacking of the Finance Minister

• His reelection

• The replacement of Zuma by Ramaphosa

What is one of the main challenges Cyril Ramaphosa faces in attracting foreign investment?

• High inflation rates

• Land reform and expropriation concerns

• Political instability

• Lack of natural resources

What is the current account deficit of South Africa as a percentage of GDP?

• 6.2%

• 5.7%

• 4.8%

• 3.5%

What has the new South African government done to improve investor confidence?

• Implemented strict land expropriation policies

• Reduced interest rates

• Changed personnel at top agencies

• Increased taxes significantly

Why are South African bonds considered attractive to investors?

• Frequent rate rises

• Yields are significantly above the policy rate

• Low yields compared to policy rates

• High inflation rates