BER Research Notes
Understanding and forecasting tender prices in South Africa
Last updated: Mar 1 2021 11:57AM
This note discusses the main drivers of tender price growth as measured by the BER Building Cost Index. In addition, a brief background of the BER BCI is provided as well as some insight into the effect of the building cycle on tender prices. The report ends
read moreThis note discusses the main drivers of tender price growth as measured by the BER Building Cost Index. In addition, a brief background of the BER BCI is provided as well as some insight into the effect of the building cycle on tender prices. The report ends with a forecast of the BER BCI using a purpose-built econometric model and the latest BER macroeconomic forecast.
SA fiscal woes and default risk: A global perspective
Last updated: Feb 17 2021 3:51PM
A global overview of successful fiscal consolidations suggests that SA’s aggressive expenditure-based consolidation strategy ticks a number of boxes. The concern is implementation. Failure to execute the plan risks a fiscal crisis in the next five years.
read moreA global overview of successful fiscal consolidations suggests that SA’s aggressive expenditure-based consolidation strategy ticks a number of boxes. The concern is implementation. Failure to execute the plan risks a fiscal crisis in the next five years.
no6... How high-speed internet can help grow the South African economy during and after the COVID-19 pandemic
Last updated: Aug 20 2020 8:37AM
There is a large and growing body of evidence that suggests that ICT and connectivity have a positive impact on economic growth. In a world that is increasingly moving into cyberspace, the global COVID-19 pandemic has accelerated online business and social
read moreThere is a large and growing body of evidence that suggests that ICT and connectivity have a positive impact on economic growth. In a world that is increasingly moving into cyberspace, the global COVID-19 pandemic has accelerated online business and social activity. Unfortunately, this means that those who remain unconnected to the internet are unable to partake in the opportunities that this digital transformation creates and nurtures. To prevent South Africa’s digital divide from worsening the country’s already stark economic inequality, policy makers and regulators need to enable a favourable investment environment.
no5... The right mix: Price and technological development in South Africa's energy grid optimisation
Last updated: Jun 29 2020 9:39AM
The cost of generating electricity from renewable sources like wind and solar power has declined sharply in recent years. There is much evidence to suggest that these costs have become competitive to coal-fired electricity. Optimising the electricity system
read moreThe cost of generating electricity from renewable sources like wind and solar power has declined sharply in recent years. There is much evidence to suggest that these costs have become competitive to coal-fired electricity. Optimising the electricity system means that the financial and environmental costs of different forms of energy generation need to be considered, while accommodating variation in demand. This research note shows that based on recent cost trends in renewable energy and the expectation of further cost declines, it might well be cost-effective to include even more of these sources into South Africa’s future energy mix than what is proposed in the Integrated Resource Plan (IRP 2019).
no4...A South African Sovereign Wealth Fund: A Century Too Late or Instrument of Reform?
Last updated: Jun 3 2020 8:29AM
It is difficult to see where the money for a sovereign wealth fund could possibly come from in the period of fiscal consolidation that lies ahead for South Africa following the COVID-19 pandemic.
no3...COVID-19: The impact on the South African tourism industry
Last updated: May 18 2020 2:50PM
Under normal circumstances, the tourism industry is an important driver of growth and job creation in the South African (SA) economy. Unfortunately, the COVID-19 pandemic effectively brought all domestic and inbound tourism to a standstill and is expected to
read moreUnder normal circumstances, the tourism industry is an important driver of growth and job creation in the South African (SA) economy. Unfortunately, the COVID-19 pandemic effectively brought all domestic and inbound tourism to a standstill and is expected to result in massive job and revenue losses in this industry.
no2...The historical performance and outlook for public sector infrastructure investment
Last updated: May 7 2020 10:07AM
Public sector fixed investment will be a drag on the economy in the short- to medium term. Furthermore, sectors which rely heavily on this as a source of work/income, most prominently the construction sector, will continue to see new work remain scarce.
read morePublic sector fixed investment will be a drag on the economy in the short- to medium term. Furthermore, sectors which rely heavily on this as a source of work/income, most prominently the construction sector, will continue to see new work remain scarce.
no 1… Developments in trading of the rand in foreign currency markets
Last updated: Feb 6 2020 11:50AM
The rand remains a highly liquid emerging market currency. However, the trading of the rand in foreign exchange markets is increasingly taking place outside of South Africa, and by non-bank financial institutions. This is a trend observed in most emerging
read moreThe rand remains a highly liquid emerging market currency. However, the trading of the rand in foreign exchange markets is increasingly taking place outside of South Africa, and by non-bank financial institutions. This is a trend observed in most emerging market currencies. this change brings with it a need for market participants, especially the monetary authorities, to change the way they gather their market intelligence.
no 3… The release of high-demand radio spectrum – some considerations in realising the potential economic impact
Last updated: Oct 7 2019 8:28AM
There has been considerable attention paid to the expected economic impact of releasing additional and as yet unused, spectrum to South African telecom companies. Broadly, the assumption is that it will somehow trigger significant economic activity. As such,
read moreThere has been considerable attention paid to the expected economic impact of releasing additional and as yet unused, spectrum to South African telecom companies. Broadly, the assumption is that it will somehow trigger significant economic activity. As such, any delay in awarding spectrum is therefore supposedly hampering economic growth. This note unpacks some of the elements towards leveraging the intended release of spectrum and its expected economic benefits
no2… Balance-sheet policies and the South African Reserve Bank
Last updated: Sep 4 2019 2:56PM
Prominent South African politicians have recently argued for a change in the mandate of the South African Reserve Bank (SARB) as well as a change in the conduct of monetary policy. Specifically, the SARB was encouraged to use so-called quantitative easing
read moreProminent South African politicians have recently argued for a change in the mandate of the South African Reserve Bank (SARB) as well as a change in the conduct of monetary policy. Specifically, the SARB was encouraged to use so-called quantitative easing (QE) in addition to their usual interest rate policy to pursue an agenda of faster economic growth and job creation. This note considers the use of QE and related balance-sheet operations by central banks.