It seems 2018 has gotten off to a racy start, and that’s not such a bad thing. So we thought this might be a good time to send you our well wishes for the year ahead, and share some thoughts and expectations for the New Year – which might be of value to you.
The World Bank this week revealed that they expected South Africa to grow by a mere 1,1% this year. This is not good news for business and employment growth, and certainly not for government coffers which have been struggling. The government will need to borrow some R163 billion for the 2018/19 financial year, and treasury signaled that this could be more as we experience revenue shortfalls. This excludes the R50 billion shortfall from last year, and the demands for free education.
While we think we will face even stronger headwinds than we saw last year, we are very excited about the opportunities these challenges will present. As a research and management consulting firm, we are even more excited to work alongside our clients – helping navigate the potholes while exploiting attendant opportunities. While we have to sustain optimism, we should not be blind to the dangers we face. Our fiscal situation is deteriorating, our financial markets are vulnerable, and the political system not yet stable. This means that business will continue to require creative and sustained interventions from those who lead. Yet, there exists still strong interest in South Africa from outsiders looking for opportunities. Our economic sectors present varied and distinct opportunities, and South Africans seem to have found a new sense of energy.
We want to be here to help you look for answers and build robust strategies to manage risks and exploit emerging opportunities. We think the key to success for all of us will be to demonstrate value to stakeholders and consumers, as well as collaborating.
Attached is a longer note on our thoughts for the coming year, and we look forward to sharing ideas and thoughts with you on various platforms and avenues.
Here’s to wishing you a prosperous New Year!