Southern Africa regional superpower in the making. Dr Roelof Botha

Similar documents
AUTOMOTIVE COMPONENTS PRODUCT / MARKET MATRIX. AIEC P O Box Arcadia 0007 Tel: Fax: Website:

Report on Finnish Technology Industry Exports

Economic outlook. Trading South Africa 12 March 2014

NATIONAL EXPORT STRATEGY: DIVERSIFICATION

Argentina Bahamas Barbados Bermuda Bolivia Brazil British Virgin Islands Canada Cayman Islands Chile

Global Construction 2030 Expo EDIFICA 2017 Santiago Chile. 4-6 October 2017

The state of the South African economy With perspectives on agriculture & the status of South Africa s sovereign bonds

The mining sector in Africa

ide: FRANCE Appendix A Countries with Double Taxation Agreement with France

A Low Growth Trap Amidst the Skills Challenge in South Africa. Professor Haroon Bhorat DPRU, UCT 29 September 2016

Chart Collection for Morning Briefing

Ian Kirk, Sanlam Group CEO. 28 August 2017

The contribution of the South African Breweries to the SA economy. Hugo Pienaar 29 April 2008

Appendix. Table S1: Construct Validity Tests for StateHist

Emerging Markets Outlook

Monetary Policy: A Key Driver for Long Term Macroeconomic Stability

Quarterly Investment Update First Quarter 2017

Improving the Investment Climate in Sub-Saharan Africa

CNH and China QFII market: Opportunities and Challenges A Fund Custodian and Administrator's Perspective"

YUM! Brands, Inc. Historical Financial Summary. Second Quarter, 2017

Today's CPI data: what you need to know

Global Economic Prospects and the Developing Countries William Shaw December 1999

Market Briefing: Gold

Today's CPI data: what you need to know

ANNEX 2: Methodology and data of the Starting a Foreign Investment indicators

Snapshot of SA Economy

HEALTH WEALTH CAREER 2017 WORLDWIDE BENEFIT & EMPLOYMENT GUIDELINES

VEDP QUARTERLY ECONOMIC UPDATE

A. Definitions and sources of data

Financial wealth of private households worldwide

Today's CPI data: what you need to know

Today's CPI data: what you need to know

TRENDS AND MARKERS Signatories to the United Nations Convention against Transnational Organised Crime

RECENT EVOLUTION AND OUTLOOK OF THE MEXICAN ECONOMY BANCO DE MÉXICO OCTOBER 2003

Today's CPI data: what you need to know

Dutch tax treaty overview Q3, 2012

ECONOMIC BULLETIN - No. 41, NOVEMBER Statistical tables

Today's CPI data: what you need to know

A short history of debt

Today's CPI data: what you need to know

Today's CPI data: what you need to know

Quarterly Investment Update First Quarter 2018

India s International Trade & Investment

Today's CPI data: what you need to know

Today's CPI data: what you need to know

Request to accept inclusive insurance P6L or EASY Pauschal

South Africa: National Budget 2009/2010 Budgeting during a global credit and economic crisis. Kevin Lings Economist 12 February 2009

Great Lakes & St. Lawrence Region 2015 Economy Profile Update

Global Business Barometer April 2008

Index of Financial Inclusion. (A concept note)

Schedule of Accreditation issued by United Kingdom Accreditation Service 2 Pine Trees, Chertsey Lane, Staines-upon-Thames, TW18 3HR, UK

PMITM. The world s leading economic indicator

Economic Stimulus Packages and Steel: A Summary

CGMA global economic forecast

10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY

EQUITY REPORTING & WITHHOLDING. Updated May 2016

The External Environment for Developing Countries

Turkey: Recent Developments and Future Prospects. ISBANK Economic Research Division October 2018

The Global Markets Opportunity in Sub- Saharan Africa. 17 November 2010

Actuarial Supply & Demand. By i.e. muhanna. i.e. muhanna Page 1 of

Lusaka, 7 May Note: The original of the Agreement was established by the Secretary-General of the United Nations on 2 June 1982.

Progress Towards Strong, Sustainable, and Balanced Growth. Figure 1: Recovery From Financial Crisis (100 = First Quarter of Real GDP contraction)

San Francisco Retiree Health Care Trust Fund Education Materials on Public Equity

World Consumer Income and Expenditure Patterns

International Monetary Fund. World Economic Outlook. Jörg Decressin Senior Advisor Research Department, IMF

Scale of Assessment of Members' Contributions for 2008

Country Update: Mauritius

Revised October 17, 2016

DOMESTIC CUSTODY & TRADING SERVICES

The State of the World s Macroeconomy

Guide to Treatment of Withholding Tax Rates. January 2018

STATISTICS Last update: 03/07/2017

US Business Tax Reform Would Be Healthy for the World Economy. By Duanjie Chen and Jack M. Mintz

Global Economic Prospects: Navigating strong currents

PRELIMINARY RESULTS rd February 2012

26 MAY Boustead Singapore Limited / Boustead Projects Limited Joint FY2015 Financial Results Presentation

Why Invest In Emerging Markets? Why Now?

Countries with Double Taxation Agreements with the UK rates of withholding tax for the year ended 5 April 2012

SANGAM GLOBAL PHARMACEUTICAL & REGULATORY CONSULTANCY

The Budget of the International Treaty. Financial Report The Core Administrative Budget

RUSSIAN ECONOMIC OUTLOOK AND MONETARY POLICY CHALLENGES RUSSIAN ECONOMIC OUTLOOK AND MONETARY POLICY CHALLENGES. Bank of Russia.

New Exchange Rates Apply to Agricultural Trade. 0. Halbert Goolsby. Reprint from FOREIGN AGRICULTURAL TRADE OF THE UNITED STATES April 1972

Employer Social Charges 13/10/2017 EURO/USD USD 1.20 JPY/USD 0.01 AUD/USD USD 0.73 GBP/USD Charges patronales obligatoires %

Regional Economic Outlook for sub-saharan Africa. African Department International Monetary Fund November 30, 2017

SHARE IN OUR FUTURE AN ADVENTURE IN EMPLOYEE STOCK OWNERSHIP DEBBI MARCUS, UNILEVER

3. Debt Indicators of Households and Corporations

Corrigendum. OECD Pensions Outlook 2012 DOI: ISBN (print) ISBN (PDF) OECD 2012

Instruction Deadline. *Settlement Cycle

Trends, like horses, are easier to ride in the direction they are going

Belgium has a small, open economy. Foreign trade is of major importance to the overall

Chart Collection for Morning Briefing

1st Quarter 2014 THE KWAZULU-NATAL QUARTERLY ECONOMIC AND STATISTICAL OVERVIEW EZOMNOTHO

FEES SCHEDULE (COPPER / GOLD)

The world of CARE. 2 CARE Facts & Figures

International Travel & Tourism Study (Published March 2005)

International economic developments

Market Briefing: Global Markets

Sub-Sahara Africa Economic Outlook

FEES SCHEDULE (SILVER/PLATINUM)

Finally, A Global Tailwind for U.S. Manufacturing Growth

Transcription:

Southern Africa regional superpower in the making Dr Roelof Botha

Health sector focus

Composition of Gauteng health budget FY 01 by programme (total R5. billion) R b Central Hospitals: 6.5 Facilities Management:. Admin & support: 1 Training/R & D: 1 District health: 7 Provincial Hospitals: 5 Emergency services: 0.7

Economic classification of Gauteng health budget FY 01 (total R5. billion) R b Capex: 1.6 Salaries: 1.9 Goods & services: 7. Transfers:.5

Health expenditure propensity households & government 10 % Government 9 8 Households 7 6 5 '9 '9 '95 '96 '97 '98 '99 '00 '01 '0 '0 '0 '05 '06 '07 '08 '09 '10

Per capita health expenditure 009 top-1 SSA economies South Africa Angola Nigeria Cameroon Senegal Ivory Coast Zambia Ghana Uganda Kenya Tanzania Ethiopia $ 0 100 00 00 00 500

Per capita health expenditure 009 selected SADC countries Botswana South Africa Mauritius Namibia Angola Swaziland Lesotho Zambia Tanzania Mozambique Malawi DR Congo $ 0 100 00 00 00 500 600

Per capita health expenditure 009 top-1 emerging markets Poland Brazil Argentina Saudi Arabia Turkey Mexico South Africa Russia China Thailand Indonesia India $ 0 100 00 00 00 500 600 700 800

Per capita health expenditure 009 top-1 high-income economies United States Switzerland Netherlands France Germany Canada Australia Italy Japan United Kingdom Spain South Korea $ 1,000,000,000,000 5,000 6,000 7,000

Life expectancy at birth 009 - top-1 SSA economies Ivory Coast Ghana Tanzania Senegal Ethiopia Kenya Uganda South Africa Cameroon Nigeria Angola Zambia Years 0 5 50 55 60

Life expectancy at birth 009 selected SADC countries Mauritius Namibia Tanzania Botswana Malawi South Africa Mozambique DR Congo Angola Zambia Swaziland Lesotho Years 0 5 50 55 60 65 70 75

Life expectancy at birth 009 top-1 emerging markets Poland Argentina Mexico Saudi Arabia China Brazil Turkey Indonesia Thailand Russia India South Africa Years 50 55 60 65 70 75

Life expectancy at birth 009 top-1 high-income economies Japan Switzerland Spain Australia Netherlands Italy France Canada United Kingdom Germany United States South Korea Years 65 70 75 80 85

Access to sanitation 009 (% of population) top-1 SSA economies South Africa Angola Senegal Zambia Uganda Cameroon Nigeria Kenya Tanzania Ivory Coast Ghana Ethiopia % 0 0 0 60 80

Access to sanitation 009 (% of population) selected SADC countries Mauritius South Africa Botswana Angola Malawi Swaziland Zambia Namibia Lesotho Tanzania DR Congo Mozambique % 0 0 0 60 80 100

Access to sanitation 009 (% of population) top-1 emerging markets Thailand Saudi Arabia Turkey Poland Argentina Russia Mexico Brazil South Africa China Indonesia India % 0 0 60 80 100

Average annual growth in per capita health expenditure since 006 - top-1 emerging markets China Argentina Brazil Thailand Indonesia Poland India Turkey Russia Saudi Arabia South Africa Mexico % 0 6 8 10 1 1 16

The Southern African economy Impact of recession on Prospects for the economy some sustained growth sectors lagging

Volume of manufacturing output (seasonally adjusted) (index, 005 = 100) 115 Index 110 105 100 95 90 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11

Gauteng business barometer by sector % annualised change to March 11 (Sake & BoE Private Clients) Govt. & other services Transport & comm. Overall barometer Wholesale & retail trade Finance & bus. services Mining % Manufacturing Electricity & water Construction -0-10 0 10 0

Manufacturing worst 10 performers between 005 and Q1 011 (% change in output) Motor vehicles Rubber % Petroleum Furniture Wood products Non-metallic min. Publishing Clothing Machinery Textiles -5-0 -15-10 -5 0 5

Manufacturing best 10 performers between 005 and Q1 011 (% increase in output) Plastics Electrical machinery Chemicals Beverages Glass Paper % Metal products Vehicle parts Food Total 0 5 10 15 0 5 0 5

Real $/rand exchange rate & the balance on the current account 0.17 $ -5 0.16-15 0.15 0.1-5 0.1-5 0.1-5 0.11 Rb 0.1-55 Q1'0 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11 Exchange rate Current account

Real $/rand exchange rate & the rand gold price 0.17 0.16 0.15 0.1 0.1 0.1 $ 10000 9000 8000 7000 6000 5000 000 0.11 R 000 0.1 000 Q1'0 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11 Exchange rate Gold price

Long-term bond yields US & South Africa 16 % 1 1 South Africa 10 8 6 US '96 '98 '00 '0 '0 '06 '08 '10

Average annual change in real R/US$ exchange rate during key phases of currency volatility (chronological) 1980 to 198 198 to 1985 1985 to 199 199 to 1997 % 1997 to 00 00 to 005 005 to 008 008 to 011 1980 to 011-15 0 15 0

Reversal of convergence of the big tax revenue sources burden returns to individuals 6 % of total Individuals 8 VAT 0 Companies 1 '90 '9 '9 '96 '98 '00 '0 '0 '06 '08 '10

Fiscal deficits as % of GDP selected trading partners US UK Greece Japan France South Africa India Turkey Russia Brazil China Germany % 0 6 8 10

Total corporate tax rates selected high-income countries & emerging markets (Source: World Bank/IFC/PwC) Brazil China Germany Australia US Russia Turkey UK South Africa South Korea Chile % 10 0 0 0 50 60 70

Budget deficit/gdp ratio (with National Treasury forecast to 01) 0 % '00 '01 '0 '0 '0 '05 '06 '07 '08 '09 '10 '11 '1 '1 '1 - - -6-8 -10

Degree of concern amongst CEOs over government response to fiscal deficit (Source: PwC Global CEO Survey) 60 % 50 0 0 SA Global 0 10 0 None Not significant Somewhat Extremely

SA banks - ratio of credit impairments to total assets.5 % 1.5 1 0.5 0 '9 '9 '9 '95 '96 '97 '98 '99 '00 '01 '0 '0 '0 '05 '06 '07 '08 '09 '10

Quarterly % change in mortgage advances outstanding 7 6 % 5 1 0 Q'06 Q1'07 Q1'08 Q1'09 Q1'10

Absa average house price (medium-sized, nominal, at end of quarter) R 000 960 90 90 900 Q1'08 Q1'09 Q1'10 Q1'11

Total credit extension by all financial institutions..1 R trillion 1.9 1.8 1.7 1.6 1.5 Q'06 Q1'08 Q1'09 Q1'10 Q1'11

Bloom time for emerging markets & SADC The recession is over prepare for higher growth Dr Roelof Botha Dr Roelof Botha

Sharp contrast between the GDP growth paths of Zambia and Zimbabwe (nationalisation in action) 1 $ billion Zambia 9 6 Zimbabwe 0 '9 '95 '96 '97 '98 '99 '00 '01 '0 '0 '0 '05 '06 '07 '08

Economic growth expected to consolidate in highincome countries & Russia (Source: World Bank) % real GDP growth 0 - Euro Area Japan US Russia 008 009 010 011 - -6-8

Key developing regions exhibit resistance to recession & set to grow at high rates (Source: World Bank) 10 % real GDP growth 8 6 008 009 010 011 0 Brazil Africa India China -

China & India ignore the recession % real GDP growth 1 China 9 India 6 '96 '97 '98 '99 '00 '01 '0 '0 '0 '05 '06 '07 '08 '09 '10

Emerging markets top-ten economies (total $1. trillion) China Brazil Russia India Mexico Turkey $bn Indonesia Poland Saudi Arabia South Africa 0 750 1500 50 000 750 500 550

Emerging markets 1 st tier group: per capita GDP 010 Czech Rep Taiwan Hungary Poland Russia Brazil Mexico South Africa $ China India 0,500 5,000 7,500 10,000 1,500 15,000 17,500

SA population trends & forecast (Sources: Stats SA, UNDP & post-005 extrapolation) 70 60 Million 50 0 0 0 10 0 '60 '65 '70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '0 '5 '0

SADC population forecast to reach 0 million by 00 50 Million 00 50 00 150 100 1980 1985 1990 1995 000 005 010 015 00 Source: UNDP

Most populous developing countries & SADC population China India SADC Indonesia Brazil Pakistan Bangladesh Nigeria Russia Mexico Philippines Viet Nam Million 0 50 500 750 1000 150

SADC share of world reserves for selected metals & minerals (009) Chrome ore Platinum Manganese Diamonds Gold Cobalt Vanadium Zircon Titanium Uranium Copper Coal % 0 0 0 60 80 100

Economic recovery: U-shaped or V-shaped?

Volume of production non-durables 115 Index (005= 100) 110 105 100 Q1/07 Q1/08 Q1/09 Q1/10 Q1'11

Recession only lasts quarters 7 Real annualised GDP growth (%) Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11 - -8

Electric current generated in South Africa (index, 005 = 100) 107.5 Index 105 10.5 100 97.5 95 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11

Household consumption expenditure at constant 005 prices durables & semi-durables 10 10 R bn (annualised) Semi-durable 10 110 100 Durable 90 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11

Change in inventories (constant 005 prices) 0 R bn 0 10 0-10 '9 '95 '96 '97 '98 '99 '00 '01 '0 '0 '0 '05 '06 '07 '08 '09 '10-0 -0-0

Sharp recovery of the leading business cycle in the US 10 Index, 000 = 100 17 1 11 /'06 /'06 1/'07 /'07 /'07 /'07 1/'08 /'08 /'08 /'08 1/'09 /'09 /'09 /'09 1/'10 /'10 /'10 /'10 118 115 11

South Africa s leading business cycle indicator 15 10 Index, 000 = 100 15 10 115 110 105 100 Q'06 Q1'07 Q1'08 Q1'09 Q1'10

Recovery of World Bank commodity price index for raw materials (000 = 100) 00 Index 50 00 150 100 Q'07 Q1'08 Q1'09 Q1'10 Q1'11

Recovery of World Bank commodity price index for metals & minerals (000 = 100) 00 Index 50 00 50 00 150 Q'07 Q1'08 Q1'09 Q1'10 Q1'11

Real retail trade sales (index, 008 = 100) 105 Index 100 95 90 Q'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11

Number of new vehicles sold (index, 000 = 100) 0 00 Index 180 160 10 10 100 Q'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11

JSE all share index ( 000).5 Index 0 7.5 5.5 0 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11

Conclusion - Convergence of structural & cyclical trends The recession is over prepare for higher growth Dr Roelof Botha

Total employment in SA (Source: Stats SA Quarterly Labour Force Survey) 1000 000 1750 1500 150 1000 1750 Q'08 Q1'09 Q1'10 Q1'11

Real non-agricultural output growth by sector 1st quarter 011 (annualised) Mining Manufacturing Trade & catering Transport & comm. Total Other services % Government Finance & bus. Services Electricity & water Construction 0 1

Overall business barometer four largest Provinces Source: Sake/BOE Private Clients 10 Index (005 = 100) 110 100 March'09 March'10 March'11 90 80 Gauteng KwaZulu/Natal Western Cape Eastern Cape

Progress with meeting basic needs.9 million houses 1000 new health clinics Access to clean water for 10 million people New sanitation facilities for 7 million people.5 million new electricity connections Free education Redistribution of million hectares of land Primary School Nutrition Programme for 5 million children 1 million new social grant beneficiaries (BIG?)

Remarkable metal commodity price recovery the leaders (% increase - 009 low to nd quarter 011) Silver Tin Copper Nickel WB metals index Lead Platinum % Aluminum Zinc Gold 50 100 150 00 50

Growth in tourist arrivals from selected regions June 009 to June 010 50 Number ( 000) 0 0 0 June '09 June '10 10 0 Australia & Middle East Asia Central & South America North America

Consumer & producer price trends 9 6 % PPI CPI 0 - Aug'09 Oct Dec Feb'10 April June Aug Oct Dec Feb'11 April -6

The prime overdraft rate peaks & troughs since democracy 5 % 0 15 10 5 Apr '9 May'96 Mar '98 Aug '98 Sep '01 Sep '0 Apr '05 Jun '08 Jan '11

Capital expenditure by SA Government as % of GDP returns to growth mode 8 % 6 '60 '65 '70 '75 '80 '85 '90 '95 '00 '05 '10

Private sector capital expenditure continues to anticipate a rise in demand % 11 9 7 '60 '65 '70 '75 '80 '85 '90 '95 '00 '05 '10

Medium-term growth prospects buoyed by rise in capital formation/gdp ratio % 0 18 16 1 9 95 96 97 98 99 '00 '01 '0 '0 '0 '05 '06 '07 '08 '09

Real GDP forecast to return swiftly to pre-recession growth trajectory 6 5 % 1 0-1 95 96 97 98 99 '00 '01 '0 '0 '0 '05 '06 '07 '08 '09 '10 '11 -

New record high for real disposable income per capita of households (at constant 010 prices) R 000 0 8 6 '90 '9 '9 '96 '98 '00 '0 '0 '06 '08 '10 Q1'11

% of CEOs that regard the following selection of potential business threats as their most significant risk (Source: PwC) 60 % 50 0 0 SA Global 0 10 0 Skills Energy costs Shift in demand Tax burden Supply chain security

Key drivers of future healthcare sector activity Provision of clean water & sanitation Improvements to education system NHI likely to benefit generic pharmaceuticals SA population to reach 57 million in 00 SADC population to reach 0 million in 00 Sustained economic growth million new jobs by 00 Further structural increase in per capita income Broadening of the tax base