Released on = January 2, 2007, 3:45 am

Press Release Author = RNCOS

Industry = Industrial

Press Release Summary = Even after a slight moderation in the Q3 of this year
(2006), South Africa’s current account shortfall is likely to remain high for
quite some time.

Press Release Body = In spite of the slackening in the Q3, 2006, current account
shortfall of SA will remain high for some time. Paradoxically, an increasing share
of this deficit is due to the costs of servicing foreign capital inflows upon which
the country relies to fund the overall shortfall. Current account balance of R90.5
Billion’s (seasonally adjusted and annualized) in Q3 of this year entails a
massive net payment of R28.2 Billion, and most of this money goes towards servicing
overseas investments in SA.

As per Reserve Bank’s Quarterly Bulletin for Q3, 2006 that was released on 8
December 2006, the current account deficit shrunk to 5.2% of GDP (Gross Domestic
Product), whereas it was at an average of 5.9% during Q1 & Q2 of this year. These
numbers give a clear indication that rising costs, for example overheads related to
insurance and shipping, are incurred due to rising volumes of cross border trade.
And, net inflow of foreign capital doesn’t come in a flash to SA.

As per a Research Analyst’s view at RNCOS, who has recently done a report
named “Banking Sector in South Africa”, “The reasons behind this
spending habit comprise interest rates which stay relatively low, despite the recent
hikes of 200 basis point.”

The research report “Banking Sector in South Africa” helps clients study
and analyze:

- Get an insight into the trends in market performance.
- Pinpoint sectors of growth and identify the driving factors.
- Identify market, brand leaders, and understand the competitive environment.
- Effect of Mzansi accounts on banking sector of South Africa.
- Financial sector charter and BEE affecting the banking sector in South Africa.
- Key Challenges and Strategies.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

For more information visit: http://www.rncos.com/Report/IM0100.htm

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Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com