Banks prepared for greylisting, extra scrutiny for third parties, more hurdles for investors – Kokkie Kooyman

South Africa has been placed on a global financial watchdog’s so-called grey list denoting nations with shortcomings in tackling illicit financial flows, a move that will, according to Bloomberg, scar the country’s international reputation and may raise costs for banks and asset managers. The decision was announced by the Financial Action Task Force. Nigeria was also added to the list. It places South Africa in the same category as Mozambique, the Democratic Republic of the Congo, Haiti, and Syria. Denker Capital co-founder, Kokkie Kooyman, said it would not affect the man in the street, and even the banks would hardly notice it, but there would be more scrutiny on other avenues by which money left or entered the country. Reacting to the 2023 budget, Kooyman said there had been a government mind shift on the privatisation of electricity. The increase in South Africa's debt-to-GDP ratio meant the country was slowly moving towards Ghana, Zambia, or Egypt. He also weighed in on the sudden exit of André de Ruyter. Learn more about your ad choices. Visit megaphone.fm/adchoices