South Africa’s current economic situation and how it affects you

With the global economy facing the worst meltdown since the Great Depression, the financial crises have spread to global markets. Developed economies, led by the United States, are now in a recession and the word “depression” has crossed a few lips.

Attempts by governments to resuscitate economic and market confidence through fiscal stimulus and aggressive monetary policy easing continue to falter, as economic data across the globe indicate that the economy is taking a turn for the worst.

The International Monetary Fund now estimates that global growth will fall from 3.4% in 2008 to a mere 0.5% in 2009 – the lowest since World War II. The big question is whether the adage is true – “does the flap of a butterfly’s wings in the United States set off a tornado in South Africa?”

At the next financial planning club, Kelebogile Moloko, director and portfolio manager of Prowess Investment Managers will explore the following:

  • the global recession: how it started and what does it mean?
  • the implications to our local economy
  • what we can do to combat the effects of the global recession
  • inflation or deflation? what indicators to look out for
  • what does it mean for the consumer?
  • what are the investment implications?

Kelebogile is a founding shareholder of Prowess Investment Managers, which specialises in alternative assets and fixed income. Prior to this, she was employed at Futuregrowth Asset Management for eight years. Her primary responsibilities included portfolio management, credit analysis and research, interest rate research and business development. At Futuregrowth she was a member of the Credit Committee, Investment Committee and Interest Rate Committee. Kelebogile has a passion for social and economic upliftment causes and her extensive involvement with socially responsible and developmental investments at Futuregrowth afforded her the opportunity to achieve this objective. She served as a director for Infrastructure Finance Corporation, Community Property Company and Advent Asset Managers. She holds a BCom Honours degree in financial analysis and portfolio management. She was one of the first delegates to complete a Leadership Advancement Programme in 2004 offered by UCT Graduate School of Business in partnership with the Life Insurance SETA (“INSETA”)