Nedbank used their semi-annual report to issue a strict warning to the government. According to the report, there is a 10% chance that South Africa is heading for a Ramaphobia scenario.
It involves the infighting in the ANC, the battle being lost against corruption, more downgrades, power cuts with increasing tensions and social unrest.
Nedbank experienced an increase in debt that could not be recovered, which is an example of the country’s struggling economy.
Multichoice has joined the bandwagon of South African companies that are cutting jobs to stay afloat in these difficult times.
Why are these South African companies retrenching staff?
The satellite network stated that, although billions of rand in returns were reported for the 2018/2019 financial year, consumer behaviour and data on their digital self-service shows that there is less of a need for that many call centre and walk-in centre agents on their roster.
This is yet another blow for South Africa’s economy, whose GDP retracted by more than 3% in the first half of the year.
While Multichoice’s decision was brought on by pressure from the impending take-over of the fourth industrial revolution, other companies have been forced into a corner with very little choice but to sacrifice a portion of its workforce to remain financially soluble.
What impact will this have on unemployment?
This development has not complemented
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The banking sector will be rocked by allegations of corruption this week, when Transnet tells the commission of inquiry into state capture about Nedbank’s involvement in a controversial deal which saw the bank pocket R780 million from the parastatal.
This week, Transnet’s acting chief executive, Mohammed Mahomedy, will appear before the state capture inquiry where he will detail how Nedbank made R780 million after changing the interest rate terms of a multibillion-rand loan three days after making the loan.
Mahomedy replaced Tau Morwe, whose six-month contract was not renewed when it expired early this month. Nedbank is the latest in a long list of private sector companies to be implicated in state capture.
Mahomedy’s statement shows that in August 2014, Transnet started negotiations for a R12 billion syndicated loan to finance the acquisition of the controversial 1 064 locomotives.
The loan is broken down as follows: Bank of China
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