Look
This fascinating graph outlines the safest places in the world in the event of a global conflict, such as World War III. To my surprise, South Africa made the list! Our country earned its spot due to its multiple sources of food, plentiful fertile land, and access to fresh water. Additionally, South Africa offers modern infrastructure. It’s a reminder that while our geopolitics and problems often get us down, South Africa does offer resilience and a sense of security.
Listen
South Africa's current economic situation presents both challenges and opportunities. The key issues are that growth cannot rely on consumer spending, as consumers are under significant financial pressure, nor on government spending, which is constrained by debt and now sits at 75% of GDP. This makes fiscal stimulus (government spending or tax cuts) unlikely, leaving job creation and corporate investment as critical pathways to growth.
Corporate balance sheets have improved through conservative spending and cost-cutting, but this has not translated into job creation or economic expansion. While South African corporates have low debt levels compared to other emerging markets, they are reluctant to invest due to low confidence in the economy.
The way forward seems to be unlocking corporate investment through public-private partnerships and policy reforms. Some reforms show promise, particularly in energy, railways, and water infrastructure. By opening sectors like energy to private investment and allowing partnerships in significant infrastructure projects (such as ports and railways), the government is starting to make progress, although it’s slow and fragile.
The success of these reforms will be critical in the next five years. The private sector needs to be fully engaged, as reinvestment into these businesses is essential for long-term economic growth. If business confidence improves in South Africa, it could unlock meaningful growth. This underscores the role and responsibility of the private sector in shaping our economic future.
We have not seen this turnaround yet. This moment presents both an opportunity and a risk, as failing to capitalise on these reforms could lead to further economic stagnation and political uncertainty in the run-up to the next elections.
For those who want to hear more market insights, listen to Jeremy Gardiner from NinetyOne as he unpacks what may happen in the next 12 months.
Learn
This research paper explores how the concept of leisure in retirement has evolved. Our increased life expectancy has started to shape a new mindset for retirees—one of new beginnings. This study provides a comprehensive look at how retirees are using their newfound free time and highlights a key shift—the growing importance of experiences over material possessions.
Retirees increasingly prioritise meaningful activities, with two-thirds expressing a desire to try new things rather than repeat past experiences. This shift is not only relevant to retirees but also offers valuable lessons for younger generations, emphasizing that experiences and social connections often provide greater satisfaction and emotional well-being than simply acquiring more things.
Are you making enough time for leisure in your retirement? This study highlighted that creating opportunities for personal growth and deeper connections with family and friends can shape a more fulfilling life.
Ponder
In this section, I invite you to think about a question I may pose or a thought I may share.
How have your childhood experiences and family beliefs about money influenced your ability to communicate with your spouse/partner about money?
Oenophilia
“Oenophilia simply refers to enjoying wine, often by laymen.”
Viognier is either not well known in South Africa, or it’s an acquired taste, but it’s certainly not something I often see on the lunch or dinner table, which is a pity because it can be an outstanding wine. I find that Viognier is a white wine for red wine drinkers as it’s often a medium- to full-bodied wine. Give the Alvi’s Drift Viognier a try next time you make some spicy food. The notes of stone fruit will complement the meal nicely. I like drinking Viognier ice cold!
I hope you enjoyed this month’s edition.
Stay curious,
Elke Zeki