Saturday, November 12, 2011


Country Risk evaluators who were nervously awaiting the ruling of the African National Congress disciplinary committee have now heard the news. The ANC has suspended its Youth League leader, Julius Malema, for a period of five years, after finding him guilty of;

(1)  Reckless behaviour
(2)  Lack of discipline
(3) Bring the ANC into disrepute
(4) Creating factions within the ANC

A major ratings agency downgraded South Africa earlier this week, citing increased political risk. Malema has been an advocate of nationalising the country's major industries, and has been accused of playing the race card for purely political gain. His influence amongst South Africa's unemployed youth is strong, and his attorneys have stated that they intend to file an appeal of the ruling.

Should you increase Country Risk on South Africa at this time ? Review the facts, ascertain what level of exposure your bank has, and govern yourself accordingly.


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