MD's Oct Message
Category Newsletter: Message from MD
Dear Friends, Property Investors and Enthusiasts!
Following the elections we have seen a slow but definite increase in business confidence at ground level. The repro rate was left unchanged at 7% and the growth rate forecast has increased from 0% to 0.3%. This bodes well for a growing economy. If one looks further away across the waters, you will see that several First World Countries project negative growth statistics, topped with political unrest far worse than that of South Africa. Just looking at Turkey in Europe as an example to prove a point, we see that the country has been downscaled to “junk” status with an attempted military coup leaving thousands of teachers, politicians and professionals jailed and threatened with execution.
In South Africa however we are currently facing a threat of a different nature. The nationwide draught is taking a toll on our resources with detrimental effects to our economy. The Vaal Dam is now only 31% full and that alarming level is dropping by at least 1% per month. We really hope to be blessed with good rains soon otherwise we are in for a far worse scenario than the one we experienced when Eskom “turned off the power”.
Obviously, wet weather in the construction industry slows down production – a factor we always build into our anticipated completion dates – but with the country in such dire need we would certainly welcome the rain now – and plenty of it!
Author: Renico Construction
