SABC News - Economists raise alarms over Barclays Bank disinvestment from SA :Saturday 27 February 2016

Economists raise alarms over Barclays Bank disinvestment from SA

Saturday 27 February 2016 18:19

SABC

The new management of Barclays will confirm the biggest disinvestment from South Africa since the 1980's when it releases its financial results. (REUTERS)

Economists have warned that the reported disinvestment by Barclays Bank from South Africa could spark an exodus by other foreigners.

They were reacting to reports in the influential Financial Times of London that Britain's largest retail bank will announce its pull out from Africa on Tuesday.

It says the decision was sparked by President Jacob Zuma's decision to fire former finance minister Nhlanhla Nene in December and the continued slide in the rand.

The latest devaluation happened after reports that Finance minister Pravin Gordhan had threatened to resign over an investigation by the Hawks into his alleged role in a SARS rogue unit.

The Times says the new management of Barclays will confirm the biggest disinvestment from South Africa since the 1980's when it releases its financial results.

Barclays owns 62% of Absa.

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