THURSDAY, 1.15PM:
GROWTH of gross domestic fixed investment (GDFI), a major contributor to economic growth, fell from 8% in 1996 to a mere 3,5% last year as public sector investment dropped, the Reserve Bank announced on Wednesday.
The Reserve Bank’s latest quarterly bulletin showed how GDFI gradually slowed down from a 3% growth rate during the second and third quarters of 1997, to 1,5% growth in the last quarter. Declines in fixed investment by Transnet and government business initiatives had countered a rise in investment by Telkom and Eskom through initiatives to spread services to underpriveleged areas, the report indicated.
Economists are hoping that increased government investment in education, health and housing will boost the GDFI to 4% ahead of next year’s elections.
Bank figures also indicate that the growth rate of gross domestic expenditure declined to 1%, from a previous growth of 2,5% in 1996. The fall in the spending of individual households is attributed to a combination of high interest rates and taxes on already indebted consumers, with declines in spending most apparent in the transport, furniture and household appliances sectors.
BUSINESS BRIEFS
GOLD FIELDS SELLS FAIRVIEW
NEWLY formed mining house Gold Fields sold its Fairview gold mine to Avgold for R95,2-million on Wednesday, in the first sale in line with the company’s plans to dispose of its non-core assets. Avgold will finance the purchase by issuing 26,1-million shares, and paying R4,3-million in cash. The purchase of Fairview will allow Avgold to access ETC’s Sheba mine, which adjoins Fairview in the Barberton greenstone belt in Mpumalanga. Gold Fields was formed from the recent merger of Gold Fields South Africa and Gencor. Gold Fields CEO Richard Robinson said the future of Libanon, Leeudoorn, Evander and St Helena mines will be decided shortly.
IBA SHORTLISTS NINE
THE National Assembly on Wednesday shortlisted nine people for three vacancies in the Independent Broadcasting Authority. The list includes Libby Lloyd and John Mattison, both currently IBA councillors, whose terms of office expire at the end of the month. Public interviews will he held in the National Assembly building on Tuesday.
MAURITIUS JOINS TELECOM CABLE LINK
MAURITIAN Prime Minister Navinchandra Ramgoolam announced on Wednesday that the submerged telecommunications cable to be laid between South Africa and Malaysia will also link up with Mauritius. Ramgoolam said the telecommunications agreement was signed during his visit to South Africa last month. “We see Mauritius as a bridge between Asia and Africa,” he said.
JCI DELAYS RESULTS AGAIN
DEVASTATED mining house Johannesburg Consolidated Investments delayed announcing its interim results for the second time on Wednesday. Market speculation is that the delay is pending finalisation of a planned restructuring. JCI said the results will be announced on Thursday.