Tag: interest rate

As South Africa’s electricity crisis worsens, accompanied by increased interest rates, food and petrol prices, the country's potential to enter a recession rises exponentially. As most economists have noted, South Africa presently falls short on both micro and macroeconomic benchmarks, from exports and imports to infrastructure development and ballooning interest rates.

Property subletting is becoming popular in South Africa, largely because of aggressive interest rate increases and the high cost of living. Many people look for subtenants to help them pay their rent, while others seek to sublet if they’re moving elsewhere and can’t get out of their current lease.

Amidst the rising cost of living, interest rate and fuel price hikes, and load shedding, the elephant in the room remains persistently high rates of unemployment. Much fanfare tends to surround any announcement of a small decline in the quarterly unemployment rate as it did at the end of November 2022 when Statistics South Africa revealed that the official unemployment figure had decreased by one percentage point between the second and third quarters of 2022 from 33.9% to 32.9%.

For banks, disruption has become business as usual. Besides the ever-changing customer expectations, banks are under pressure to defend their market share against increased competition and the digitisation of the financial services landscape by neo-banks and FinTechs.

As we wind up 2022, it is natural to reflect on yet another tough year in the markets and to start planning for the one that lies ahead. We believe there is one crucial ingredient investors will need to ensure investment success in the new year: a fresh mindset.

Looking at global news headlines, we are inundated with negative news – from concerns about the war in Ukraine, the possibility of a global recession and uncertainty about the future of global inflation and interest rates. Locally, things appear equally uncertain and gloomy.

This year has been nothing, if not eventful. We started 2022 with Russian President, Vladimir Putin, declaring war on Ukraine. This event then triggered an energy crisis and has driven inflation, in major economies, to unprecedented levels, along with interest rates. And now, as the year draws to a close, COVID-19 has snuck in again to dominate headlines.

Consumer debt is increasing – with worrying effects for companies. Strike Date Optimisation may be the single most effective tool standing between a business that flourishes in a difficult economy, and one that’s left floundering with a growing debt book. Much has been said about the challenges facing South African consumers at present.

Receiving a bonus is an exciting event and a time for celebration to recognise the hard work you put in throughout the year. Bonuses also provide us with an opportunity to achieve our financial goals. When we think about spending the money, we need to do so responsibly.

No new business can prosper without access to start-up capital, and the regulatory environment must not stand in the way of this process. In other words, South Africa’s economic future is not served by do-gooder statutory restrictions on financing. As such, significant amendments should be made to the National Credit Act, as well as the Banks Act, to ease pressure on small businesses that seek to finance their growth.