Real Estate Investor Magazine South Africa July 2013 | Page 7

INVESTOR TALK

BY ANGELIQUE REDMOND

Financial Unrest
The rand is sinking faster than the Titanic on
her maiden voyage and this downward spiral
has investors heading for the hills. So what
will the long-term effects of this economic
instability be?
With the mining sector unrest and labour
disputes leading to investors’ lack of faith in
South Africa, the President gave a speech
meant to quell fears and the end result was
a freefalling rand. The results of his second
speech have yet to be seen. President Zuma
is quoted as saying: “The Presidency will
this year take a hands-on approach, working
closely with relevant departments and social
partners to boost confidence in the economy.
We will do this against the background of
achievements on the economic front since
1994, which must be borne in mind especially
when we face the current economic turbulence.” With the public crises faced this year, such as the
Marikana shooting, Nkandlagate, soldiers dying in Central African Republic and Guptagate, what the
country is crying out for is decisive and immediate action. The current rand drops and the possibility of
a financial downgrade will affect every single person in South Africa.
What South Africa needs is an end, once and for all, to the constant labour disputes which threaten
economic security and swift and decisive Presidential action to curtail anymore investors fleeing the
ship.

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Without further ado, here is the July edition of Real Estate Investor magazine, enjoy!

Angelique Redmond
Editor

FOREWORD
We can bounce back?
It is becoming increasingly difficult to be successful in business and investing today. In South Africa, everyone is eating the middle class, while the wealthy are targeted
for selfish civic need and the poor are just getting poorer. The global economy is sluggish at best with Europe still struggling. China and India are leading the growth
stakes while the US and Japan are starting to show signs of recovery. The good news is that there is an African sunrise, with 7 of the top 10 fast growth countries on our
continent. The bad news is that South Africa is not benefitting like its African counterparts. South Africa’s economy grew by only around 2.5% last year and growth
is struggling to reach 2% right now. Enough said! More bad news is that there is no investor confidence in South Africa. The weakening rand, wild cat strikes, high
unemployment, and the ineptness of government to deal with labour, crime, violence and corruption is now really starting to take its toll on the economy. A complex web
of laws that rules and regulates individuals and small business, the backlog in housing provision and the non-delivery of services all add massive fuel to the fire.
Nevertheless, we simply cannot afford to be downhearted. We have to start taking control of our own destinies and prevent governments and other organisations with
ulterior motives to determine our financial futures. We have to start taking action, get streetwise financial education, build businesses, invest wisely through informed
decision-making and assist other entrepreneurs to become successful. If a new breed of entrepreneurs begin to prosper, so will our economy. Make it your purpose to
make a difference in the world.
Neale Petersen
PUBLISHER

“The stability of g