While South Africa has experienced a dramatic slow-down in growth from 5% in 2007 to a predicted 1.2% in 2009, the country is still predicting growth and not a recession as are many other developed countries, says Garth de Klerk, CEO Coface South Africa. “Even with our current account deficit dropping to 3% of GDP, South Africa is substantially better off than other previously stable economies,” he said. However, South African financial restrictions continue to hamper the growth of organisations, in his view. “South African banks seem unwilling to lend money to good risk prospects. This, in conjunction with a 30% increase in liquidations in the past six months and the difficulty in collecting money from debtors, is resulting in a cash flow crisis for many organisations.”
