Enterprise Africa - August 2017
In June, Stats SA announced that South Africa had officially entered a period of technical recession. In April, the country’s credit rating was downgraded by Standard & Poor’s to a ‘Junk Status’ investment grade. The Rand continues to fluctuate in currency markets, unemployment continues to creep up, and corruption and inefficiency in the political world continues to create uncertainty and a lack of confidence – the picture isn’t pretty.
So, you’d expect that businesses would quickly close, consolidate or enter periods of quiet while the economy turns around; after all, that’s what happens during recession, right? Wrong – and this month we have perfect examples. While there have of course been some casualties, many are continuing to thrive and making the best of that most unusual South African trait of ‘predicting unpredictability’.
We talk to the Thebe Tourism Group and CEO, Jerry Mabena who explains that the company is investing heavily in new facilities around the country, including a bespoke new hotel in Kruger Park. We also hear from leading BPO business, CCI South Africa and learn that the company is planning a new 14,000 m2 office in Durban and expansion on the continent.
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We also question Bidvest Prestige about growth during tough times, and all of these organisations indicate that they do not ignore negativity in the economy but all of them are bullish about the future thanks to a commitment to sound business strategies that have been well-planned and well-executed.
There’s also comment from Reba Chemicals, TN Molefe Construction, Zorbatex, FormsXpress, Endress & Hauser, and RPP Developments all of whom back the comments from their peers that the slow economy is a cause for concern but, at this stage, nothing more.
With investment continuing to be realised and with entrepreneurs hungry for development, it seems that the view is this slowdown is just one more in a series of hiccups that have faced business over the past three decades – South Africa’s companies are experienced in this regard.
Get in touch and tell us how your business is navigating the current economic climate, we’re online @EnterpriseAfri1