Client Note

The Client Note is a short ad-hoc piece of analysis providing a detailed look at specific developments occurring either on the local or international stage. It either shows how occurrences abroad may affect the political and economic dynamics of South Africa, or how developments in South Africa may affect the country’s global standing as an investment destination.

A beefy cabinet

Yesterday, President Cyril Ramaphosa announced the new members of the National Executive for the seventh administration.

In this exclusive Client Note, Chris Hattingh takes a closer look at the size and composition of the new cabinet.

Now that the new government has been formed, attention should be given to the compromises required to formulate policy and to establish governance mechanisms.

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MK goes to Parliament

Fifty eight elected representatives of former President Jacob Zuma’s uMkhonto weSizwe (MK) party have been sworn into Parliament.

In this exclusive Client Note, Chris Hattingh looks at the factors that could impact MK's long-term stability.

Mr Zuma’s ability to impose discipline on MK members — many of whom have highly controversial reputations — will be key for the party's sustainability.

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The GNU option: ANC plays for time

10 June 2024 - On 6 June, President Cyril Ramaphosa announced the ANC’s National Executive Committee’s decision: the party will invite other parties to form a Government of National Unity (GNU).

In this exclusive Client Note, Chris Hattingh lists the key strengths and weaknesses of the GNU option.

One of the key risks flagged by Mr Hattingh is that the GNU option may prove unstable and short-lived given divergent policy priorities between the many opposition party members.

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NHI: The signals we send

16 May 2024 - President Ramaphosa has signed the National Health Insurance (NHI) Bill into law.

In this exclusive Client Note, Chris Hattingh examines how the NHI scheme could raise barriers to investment in medical technology, and could push medical personnel to look for opportunities abroad.

Mr Hattingh argues that the NHI will put severe pressure on an already constrained tax base and further add to the country's fiscal woes.

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Maize Meal Porridge (MMP) Index

07 March 2024 - Maize meal is the cornerstone staple food for many South Africans, particularly in economically disadvantaged communities.

In this exclusive Client Note, Mlondi Mdluli, the CRA's Senior Economics Researcher, unpacks our newly developed Maize Meal Porridge Index to determine the impact of food inflation on low-income households.

Mr Mdluli argues that sluggish economic growth and mounting energy costs are key contributors to the unaffordability of maize meal and other key food items.

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Frosty Relations

16 February 2024 - Tensions are mounting between the United States and South Africa after a series of relationship-damaging events.

In this exclusive Client Note, Nicholas Lorimer and Chris Hattingh discuss a new bill which will oblige the United States to review its relationship with South Africa.

The authors argue that should the bill pass, it will have serious ramifications for trade and investment between the two countries – something South Africa's stagnant economy can barely afford.

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Inflation risks in 2024

08 February 2024 - In this exclusive Client Note, Mlondi Mdluli discusses how global and local crises may conspire to create upward pressure on prices in South Africa.

Mr Mlondi argues that only through appropriate government policy and spending decisions can South Africa bring inflation under control.

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Perfecting the own goal

27 November 2023 - In this exclusive Client Note, Chris Hattingh discusses the collapse of Transnet.

Mr Hattingh argues that business should be steadfast in their demands for policy reform at all of Transnet's departments.

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