MONDAY, 12.30PM:
SOUTH African manufactured exports are on a roll, according to the Industrial Development Corporation, as local exporters take advantage of new markets.
Latest figures released by the IDC show that manufactured exports rose 22% in the first three quarters of the year, against the same period the previous year. The increase in manufactured exports means the economy is less reliant on mineral exports, reducing vulnerability to the ups and downs of the gold price. Gold exports in the same period remained almost static.
However, economists are still expressing concern that the increase in manufactured exports has not been accompanied by job creation. In fact, it would appear that many companies have geared up for international competition by cutting back on jobs.
The growth in manufactured exports seems to be related to goreign markets opening up to SA, as the biggest increases have taken place since 1994. In 1991, manufactured products accounted for only 10% of exports, while gold exports accounted for around 35%. By the first half of 1997, golf exports had declined to 21% of the total, while manufactured exports amounted to 20% of the total.
FOREIGN SHARE PURCHASES UP
FOREIGNERS bought R78,1-million in shares last week, slightly more than the R66-million they bought in the same week in 1996. Foreigners have bought R25,43-billion in equities so far this year, almost five times as much as the R5,113-billion they bought over the same period last year, the Johannesburg Stock Exchange announced on Monday.
SPOORNET MAKES DEAL WITH DRC SPOORNET has reached an agreement with the Democratic Republic of Congo’s rail company SNCC to extend an existing operating contract between them for a further six months from January 1, 1998. Spoornet had earlier informed SNCC of its intention not to renew the contract unless SNCC made an effort to settle its unpaid debt. SNCC accepted Spoornet’s conditions to address the outstanding debt, thereby ensuring the continuation of rail operations between the countries until a new contract is negotiated.