RMB: Partnerships now vital to keep South Africa’s business wheels turning
2 April 2020
Banks, businesses, government, regulators and the broader financial services sector need to pull together like never before in a constructive partnership to help guide South Africa through what will be an extremely difficult economic period, the full scale of which is as yet unknown.
James Formby, Chief Executive Officer of Rand Merchant Bank, the corporate and investment banking arm of the FirstRand Group, said that it was currently engaging with many of its corporate clients to assess their needs. “We aim to help them to keep the wheels of the economy turning despite the constraints. It’s vital for all South Africans that our corporate sector remains open for business even if it’s not business as usual.”
Formby said that RMB was following a ‘horses for courses’ approach in customising help for clients. RMB will offer extra funding, short term covenant waivers and also evaluate businesses’ capital structures to help enable them to withstand the longer-term effects of Covid-19.
“It’s important to help companies look critically at their operations and cash flows now and some months ahead rather than just encouraging them to borrow more which may create more pressure in the future,” Formby added.