Banker S.A. January 2015 - Edition 12 . | Page 9

MESSAGE FROM THE MD Measure (LSM) and in total 10 million consumers added to the middle higher LSMs (5–10); and • Social grant beneficiaries rose from 2.4 million to 16.1 million people today. However, we have a number of seemingly intractable problems we must, as a country, address. The South African economy continues to chug along on a very low growth trajectory. The IMF and National Treasury GDP forecasts of 2.9% and 3% respectively of a year ago have been reduced to 1.4% for both today. Our unemployment rate, according to STATS SA, remains stubbornly at 25.4% (narrow) and 33.8% (broad). There were numerous occurrences this year that militated against increased growth, some in the global arena, but many in our control. These include the slow recovery in our trading partners, the protracted labour strikes, ongoing uncertainty on policy implementation and interpretation and the ongoing problems in education, health, skills and infrastructure. The following critical issues are pertinent: • The crisis at Eskom! The recent load shedding has led to very serious issues in the economy, with businesses experiencing losses and constraints on their ability to grow. This situation is exacerbated by a seeming denial from Eskom management about the crisis the institution is in. We also see differing responses from government. The latest response, which is to give Deputy President Cyril Ramaphosa the responsibility to address the crisis