Investec CEO Stephen Koseff on the cost of junk status for SA

Investec, a leading financial institution, recently released its annual financial results, showcasing a robust performance amidst ongoing macroeconomic uncertainty and volatility in key operating regions. Chief Executive Stephen Cossif sat down for an exclusive interview with CNBC Africa to delve deeper into these results, discussing the company's strategic approach and the challenges posed by the recent downgrade of South Africa's credit rating to junk status by two prominent agencies. Investec's strong performance in the face of market volatility has largely been attributed to the solid foundation of its business model, customer support, and effective leadership. Despite challenging economic conditions, particularly in South Africa, the company's asset management, wealth management, and banking divisions all showed positive growth, with a marginal increase in profitability in the region. One key advantage that sets Investec apart from other major banks is its global reach and international offering. With offices in various continents, including the UK, US, Asia, and Australia, Investec provides clients with unparalleled access to global markets, catering to individuals with an international perspective regardless of their geographical location. Stephen Koseff highlighted the importance of managing macroeconomic uncertainty, citing recent geopolitical events like Brexit and the election of Donald Trump as factors contributing to market unpredictability. Despite these challenges, Investec maintains a cautious approach, focusing on customer flows rather than speculative bets, a strategy that has served them well in navigating volatile market conditions. The conversation shifted towards South Africa and the CEO Initiative, a collaborative effort among business leaders to drive economic growth and advocate for a business-friendly environment. Koseff emphasized the critical role of businesses in fostering social development and economic progress, calling for a shift in the narrative to promote investment and job creation. Addressing concerns around the recent downgrade and governmental changes in South Africa, Koseff expressed confidence in the new finance minister's alignment with the national treasury's policies, emphasizing the importance of consistency and credibility in economic governance. He underscored the significance of defending against further downgrades to avoid escalating costs and maintain fiscal discipline. In conclusion, Stephen Koseff's insights shed light on the resilience of Investec in the face of economic challenges, highlighting the importance of sustained collaboration between the private sector and government to steer South Africa towards a path of stability and growth.