South Africa’s economy probably contracted more than 30% in the second quarter when restrictions to curb the spread of the coronavirus shut almost all activity for five weeks.
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It would be interesting to speculate how many people who, after reading the Prosus and Naspers results for the year to March, are thinking the same thing: would Warren Buffett invest in either company?
Bob van Dijk, CEO of Naspers and its European-listed spin-off Prosus, received remuneration of US$15.98-million, or R276-million, in the past year, according to the Naspers annual report published on Tuesday.
South Africa’s recession deepened in the first quarter of 2020, with official data on Tuesday showing that GDP contracted 2% from the previous three months.
Media and e-commerce group Naspers on Monday reported a 4.5% drop in profit for the year to 31 March, mainly as a result of investments to drive growth in its food delivery business.
South African shares are about to round off their strongest quarter in almost two decades, and the influence of the coronavirus pandemic is clear to see in the shares most responsible for driving the market higher.
Government is considering selling a green infrastructure bond worth tens of billions of rand as part of its biggest drive ever to kick-start private investment in projects ranging from energy to water reticulation.
South African business confidence has plunged due to the impact of the coronavirus pandemic, with companies even more pessimistic now than at the height of disinvestment during apartheid.
Asset manager Ninety One has launched a R10-billion fund, in partnership with a private equity firm, that will target investments in South African businesses struggling due to the coronavirus outbreak.
The rand traded at its strongest in 11 weeks against the dollar in early trade on Wednesday, as investor appetite for riskier assets improved on prospects of a swift global economic rebound.