Message from MD - Dec 2023
Category Newsletter: Message from MD
2023 was by no means an easy year, not only locally but across the entire globe. World economies are still struggling with elevated levels of inflation and scenes of civil unrest were seen in numerous European countries. The ongoing conflicts in Ukraine and the Middle East continue to destabilise entire regions and displace millions of people.
This year will also be the hottest year ever recorded on earth and these feverish temperatures become a catalyst for other natural disasters which not only lead to human fatalities but place insurmountable pressures on economies. Hopefully, this will convince all world leaders that global warming is by far the biggest threat to civilisation and that they need to act quickly to try and slow down this man-made natural disaster.
South Africa will most probably experience less rainfall in the coming years, mainly due to the El Nino weather phenomenon. I believe we will be experiencing serious problems with our water supplies in the future; resulting in similar crippling effects to those loadshedding has caused us since 2007. In an effort to mitigate this we are already offering back-up water solutions to our clients interested in our developments in Potchefstroom, Fourways, and Bryanston.
The general consensus seems that we might expect our first drop in interest rates by mid-2024, yet our inflation rate is currently in an upward curve and sitting at 5,9%. Hopefully it will remain below the Monetary Policy Committees upper bracket of 6% and if not the case, we might still have an interest rate increase in January 2024.
Author: Nico Louw
