2009 African landscape (3) - The continent has been negatively impacted by the global crisis but is well equipped for recovery

By Benedicte Gravrand, Opalesque London:

Image by Getty Images via Daylife

The chief economist and the currency strategist at South Africa's Rand Merchant Bank (RMB) gave Opalesque their views and outlook on the region's economics.
South Africa
South Africa (S.A.), an emerging country with a business cycle closely tied to the global cycle, has been negatively affected by the financial crisis, according to RMB's chief economist Ettienne le Roux.
The channels of contagion can be seen through its exports. S.A.'s exports of commodities and manufactured goods, which account for about 30% of GDP, are mainly to the developed world, which is has been buying less. So exports have come down significantly, impacting the economy at large.
"We've already seen this in typical industries, mining in particular," he said. "The mining output has contracted significantly as has manufacturing output. Here we are talking about gradual decline in the case of mining in the order -5% y-o-y and in the case of manufacturing, it is as much as -15% y-o-y."
Being labour-intensive, the mining and manufacturing sectors are shedding jobs and that will affect consumer expenditure.

Full story: http://www.opalesque.com/54218/2009_African_landscape_The_continent218.html

London firms IKOS and Alpha Strategic announce collaboration on revenue sharing agreement

Opalesque Industry Updates - IKOS Asset Management Limited (‘IKOS’), one of the leading European quantitative hedge fund managers, and Alpha Strategic plc (‘Alpha’, ‘Alpha Strategic’), the AIM listed hedge fund investment group, announced a business collaboration augmenting Alpha’s strategy of building a blended income stream from high quality, low-correlated funds, benefiting investors through instant diversification at low cost, and aiming for capital growth through a transparent listed structure.
IKOS and Alpha Strategic announce that they have signed an agreement whereby Alpha Strategic has acquired Acme Advisors Limited (‘Acme’), a wholly owned subsidiary in the IKOS advisory group. Acme has been incorporated to provide sales and distribution advisory services to IKOS in respect of the IKOS G10 Currency Fund Class (the ‘Fund’), one of IKOS’ flagship funds. For the provision of these services, ACME has an agreement with IKOS to receive 7.2% of IKOS’ aggregate management and performance fees relating to the Fund.
The IKOS agreement follows an earlier transaction with Winton Capital Management Limited in 2006. Alpha Strategic will now enjoy a second, non-correlated revenue stream, which serves to expand and diversify the company’s income base.

Full story: http://www.opalesque.com/IndustryUpdates/286/London_firms_IKOS_and_Alpha_Strategic_announce_collaboration286.html