Which Policies Can Reduce the Cost of Capital in Southern Africa ?
. Lowering interest rates and, thus, the cost of borrowing in the rand zone (Lesotho, Namibia, Swaziland and South Africa) is a priority to promote investment and economic growth. . Local-currency interest rates in these countries are driven by those on rand-denominated transactions. Reducing the le...
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| Format: | eBook |
| Language: | English |
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Paris
OECD Publishing
2004
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| Series: | OECD Development Centre Policy Briefs
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| Collection: | OECD Books and Papers - Collection details see MPG.ReNa |
| Summary: | . Lowering interest rates and, thus, the cost of borrowing in the rand zone (Lesotho, Namibia, Swaziland and South Africa) is a priority to promote investment and economic growth. . Local-currency interest rates in these countries are driven by those on rand-denominated transactions. Reducing the level and volatility of the rand premium would help reduce ?nancing costs in the region. . Policies should promote: enhancing ?nancial-market liquidity; easier access to South African ?nancial markets for African entities; domestic saving capacity; and the improvement of international perception of the rand. . Johannesburg could become a ?nancial "hub" for the region, channelling cheap resources to its neighbours |
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| Physical Description: | 28 p. 21 x 29.7cm |