New year, new challenges
As 2013 kicks into high gear, with everyone back at work, we’d like to wish you all a successful year. We hope you had a good festive break and you are ready for a fresh set of challenges and opportunities.
As the US pulls back from the brink of its ‘fiscal cliff’ and Europe struggles with its recessionary woes, South Africa is also sure to battle a bit. True, the rand has firmed a little after coming perilously close to trading at R9 to the dollar towards the end of last year, but the recent Fitch downgrade dealt us a blow – Fitch is the third agency to downgrade our status, bringing us to the dreaded BBB, just a grade above junk bond status.
In addition, the 2012 Budget Review has revised our GDP growth rate downwards from a modest 2.7% to an even more modest 2.5%, which means that government may need to make some tough fiscal choices this year, like cutting spending in real terms or allowing us to sink deeper into debt by maintaining large deficits. Let's just say that interesting times lie ahead!
However, if business has learnt anything, it is that resilience is more important than ever. Economic volatility, a continuing low interest-rate environment and political uncertainty may make up the landscape, but we South Africans know how to meet challenges head on. We are therefore taking a bullish view of 2013 and hoping that ‘13’ will bring some good luck to all of you, whether you’re superstitious or not.
We are seeing renewed strike action in the Western Cape (one life has already been lost), and strikes in Rustenburg as Amplats threatens to cut 14 000 jobs to improve profitabililty. Is 2013 going to be one long ‘strike season’, with government and big business increasingly going head to head?
In with the new
Last year, we said goodbye to Gareth Stokes, who has taken on the role of communications manager at the Financial Intermediaries Association (FIA). We would like to welcome Fiona Zerbst to the FAnews Online team.
Fiona has been writing about finance and business for the past four years, contributing to the Mail & Guardian, City Press, Moneyweb, Finweek, Leadership and many other publications. She has a particular passion for investing and wrote a chapter on the JSE for the book Going Global: Insights from South Africa’s Top Companies, published last year. She has also written bank manuals, focusing on strategy and sector dynamics.
Before launching her writing career, she edited a number of customer publications for, among others, Sanlam and American Express.
Fiona will be responsible for the FAnews Online newsletter, ensuring that you receive the latest news and commentary on developments in the fields of insurance (short-term and life), healthcare, tax and investing.
Our regular e-newsletter will commence on 1 February, from Monday to Thursday, giving you lots to chew over. As always, we look forward to your comments and suggestions and we wish you a bright and buoyant year ahead.
