Browsing: banking industry

• Zimbabwe’s banking and financial industry reflects the overall health of the economy.
• The country has broadly experienced capital flight and negligible foreign direct investment during the last 2 decades.
• Policy inconsistency has undermined Zimbabwe’s banking and financial industry together with its capital account.

Thungela Resources set to diversify beyond coal in South Africa

Zimbabwe has been dubbed the sick man of southern Africa for the past 25 years. The country has seen capital flight and an outflow of foreign investment. There are numerous causes for this result. The primary cause has been policy blunders and so-called “flip-flopping” by government gatekeepers.

Like to the rest of the world, Zimbabwe’s banking system reflects the activity of the actual economy. Banks and other financial services institutions serve as financial mediators for real economy players. This indicates that banks serve as a vital link between surplus and deficit units.

In economic terms, this means …

• Banking industry in South Africa staged a strong come back in 2021 in report by PWC.
• Banks enjoyed supportive credit conditions in the economy of South Africa.
• Banking industry is widely seen as a proxy of the general economy in South Africa
• South African economy has returned to pre-pandemic levels as evidenced by the financial performance of banks according to PWC

The banking industry in South Africa is in for good times according to a report by PWC. The banking industry sector analysis and report by the global management consulting firm published in March 2022 reports that the major South African banks delivered strong financial performance against what PWC described as “supportive conditions”.

The banking industry had combined headline earnings of ZAR 86.8 billion which represented a 99% increase from 2020 financial year levels. Banks had a combined return on equity (ROE) of 15.9% compared to 8.3% achieved in 2020, …