Business Unity SA buoyed by earnings growth

Corporate balance sheets are “strong and clean”, Business Unity South Africa deputy chief executive Raymond Parsons said in Parliament on Wednesday.

Parsons said in a submission to the standing committee on finance that earnings growth appeared to have been positive in several sectors.

“Liquidations and insolvencies have declined this year,” he said.

“Private fixed investment is gradually rising. The deployment of commitment of corporate resources will nevertheless depend on improved confidence in the business sector to strengthen economic momentum.

“Busa’s overall impression is that corporate balance sheets are currently strong and clean.”

Parsons said the rand was instrumental in containing inflation for the greater part of 2011, “counteracting” the negative impact of the rapid surge in commodity prices in the first half of the year.

However, the currency’s strength and volatility had hampered export oriented sectors, such as manufacturing, prompting the call for the South African Reserve Bank to intervene more in the currency market.

“According to the IMF [International Monetary Fund], South Africa’s reserves remain below the adequacy range, allowing for more room for reserve accumulation,” Parsons said. — Sapa

An actual Black Friday deal

Subscribe for R2/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Brakes put on foreign truck drivers

New legislation aims to protect local jobs in the transport sector amid questions as to whether SA has enough willing and skilled drivers

SANParks shifts to solar and spekboom

Solar-generated pumps are pumping larger volumes of water for wildlife than diesel used to, and spekboom is helping offset carbon emissions

Mandatory vaccination on cards as Ramaphosa keeps South Africa on...

Ramaphosa calls out world leaders for irrational travel bans as scientists gather evidence on new Omicron variant

South Africa’s just energy transition: A balancing act

South Africa’s transition to renewables will depend on its ability to attract sustained energy investments
Advertising

press releases

Loading latest Press Releases…
×