Funders consider local currency conundrum

The depreciation of the South African rand has got some fund managers talking about the potential for a currency crisis in the country at some point during the next three years. The rand has lost around 20% of its value against the dollar, the euro and sterling over the past year, a trend linked to labour unrest, slowing mining output and disappointing macroeconomic performance. However, the coinciding of the signing of final agreements in the Renewable Energy Independent Power Producers Procurement (REIPPP) programme on 9 May and the most dramatic period of devaluation for the rand has not gone unnoticed.