(Corrects name of fund to JO Hambro Capital Management Group in
para 11 from JO Hambro Investment Management)
* Foreign investors cut mining stakes, sell rand
* Zuma govt needs to be more visible
* Crisis raises worries of credit downgrade
By David Dolan and Sujata Rao
JOHANNESBURG/LONDON, Sept 18 (Reuters) – Wildcat strikes in
South Africa’s platinum belt have entered a sixth week with no
resolution in sight and investors are worried about the
government’s inability to quell the unrest.
Critics say Pretoria’s response to the strikes has been slow
and ineffective, exposing the ruling African National Congress
and President Jacob Zuma as ill-equipped to handle crisis and
lifting the chances of a credit downgrade.
The rand has tumbled, insurance against default on South
African debt has risen and foreign investors have sold shares in
mining companies.
“The lack of government appearance or intervention is one of
the most concerning things. What’s that saying about any crises
that we have in this country? It doesn’t appear that there’s
anyone to pull it all together,” said Nic Norman-Smith, a fund
manager at Lentus Asset Management in Johannesburg.
Continued…
