Political uncertainty, corruption drive financial distress – survey
Political uncertainty, high unemployment rates, slow economic growth and severe drought have created a perfect storm of economic and political events for South Africa, according to advisory firm Deloitte, which published its South African Restructuring Outlook Survey 2016 on Wednesday.
“Restructuring refers to any formal or informal process involving the financial and operational restructuring of a company’s affairs as a result of financial stress,” explained Deloitte South Africa restructuring services leader Nisha Dharamlall.
Deloitte considered the opinions of over 30 key restructuring professionals in the country to better understand the challenges and expectations of South Africa’s restructuring market in 2016.
Survey respondents included a selected mix of commercial banks, development finance institutions, lawyers, business rescue practitioners, academics and other key restructuring professionals.
The survey revealed that close to 39.4% of business restructuring experts expected a recessionary economy driven by political uncertainty and corruption, concerns around global economic health and poor commodity prices.
Deloitte restructuring services leader Daniel Terblanche believed that, despite restructuring being in its infancy in South Africa, results were encouraging as the industry understood that it required more support in financial restructuring.
“This is a significant trend at a time when increasingly more businesses in South Africa will need to become literate in managing financial stress professionally,” he said.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation