Coronation Fund Managers (CFM) has issued a warning that money continues to flow out of South Africa as the country’s economy faces significant challenges.
- CFM, a leading fund manager valued at approximately R11.3 billion on the JSE, cited high unemployment and increasing financial pressures on households as key factors driving investors to seek alternative investment opportunities.
- The company’s annual results for the year ending in September highlighted the difficult operating environment in South Africa, with dismal market returns across domestic asset classes reflecting the overall weakness of the economy.
- Net outflows for the period amounted to 10% of average assets under management, indicating a substantial loss of capital leaving the country.
- CFM emphasized that as long as unemployment remains high and households continue to face economic hardships, the outflow of money from South Africa is likely to persist.
- The challenging economic conditions and the subsequent capital flight pose significant obstacles to South Africa’s efforts to stimulate economic growth and attract investment.
- CFM’s warning underscores the urgent need for measures to address unemployment and financial pressures on households in order to restore investor confidence and retain capital within the country.