Adcorp H1 HEPS declines 15% on restructuring costs
Human resources specialist Adcorp has reported a 29 per cent decline in operating profit to R42.3 million at the halfway stage of the financial year, as it undertook restructuring to recalibrate its cost base. CNBC Africa is joined by John Wentzel, CEO, Adcorp for more.
Thu, 31 Oct 2024 10:37:34 GMT
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AI Generated Summary
- Mixed reviews and concerns over fiscal sustainability and government finance projections in South Africa's medium-term budget policy statement.
- Positive impact of recent US GDP figures on global risk sentiment and counteracting effects on the Rand.
- Focus on accelerating structural reforms and increasing infrastructure outlays to drive economic growth and attract private sector investment.
South Africa's medium-term budget policy statement has been met with mixed reviews, causing the Rand to weaken against the dollar and bond yields to rise. Annabel Bishop, the Chief Economist at Investec, gave the budget a score of five out of ten, citing concerns over the fiscal sustainability and government finance projections. While the budget showed a focus on accelerating structural reforms and increasing infrastructure outlays, there are lingering global risks that could derail progress. Despite some positive aspects, such as a strong focus on infrastructure development, the country still faces challenges in reducing long-term borrowing costs and improving economic growth.
Investec had initially expected better budget deficit figures, aligning with market sentiments. Annabel Bishop highlighted the impact of the recent US GDP figures on global risk sentiment, with a positive trend indicating that the US economy is robust and not slowing down. This favorable economic data helped counteract some of the negative effects of South Africa's budget statement on the Rand.
Looking ahead, Annabel emphasized the importance of detailed policy pronouncements, particularly in areas such as transport reforms and public-private partnerships. The government aims to attract private sector investment into public infrastructure projects, with a focus on alternative financing mechanisms and streamlining the public service. These reforms are crucial for boosting economic growth and achieving a faster trajectory in the coming years.
While there are challenges and uncertainties ahead, the medium-term budget policy statement sets the stage for important reforms and investments in South Africa's economy. With a strategic focus on infrastructure development and fiscal consolidation, the government aims to address key issues and drive sustainable growth in the years to come.