Contributor: Mr. Panache
More than just currency gaining traction.
2019 might be the year that smells like money after all. Seemingly, an economic upturn despite uneven variations between states is encouraging. The World Bank is even more positive that there will be growth in the economy this year and the coming year, with a forecast economic growth of 3.6% over the period.
Honestly, the moment for transformation is opportune and we see the African continent striving to move into the time of practical change. Change initially greeted us in SA when the African Union elected a new Chairperson from our Mother Land to lift the African continent into that practical time of change, a prosperous new era. Over the years, indeed the “African Renaissance was delivered and we saw how collaborations were strengthened with international partners.
Can’t be such a hard ask, but can only potentially lead to the most sustainable mutual gains if a lot more effort can be put towards international relations and the investment freedom. Makes me wonder what is actually discussed at executives and strategic meetings such as at the ongoing EU-Africa Summits.
A strong EU and UN working relationship is vital, though a constructive cooperation between the EU institutions and the UN also risks being somewhat hampered by frustrations on both sides. On the other hand, Trump’s way of governing just affects the EU, while the fiscal woes compounded in 2018 by weak growth prospects and raising debt-servicing costs made South Africa uneasy. With the elections in the country underway, which will likely be in May 2019, economists and knowledgeable publications predicts that the country growth will reach up to 1.4%.
Impressively, the Rand is fighting indeed to compete against the Dollar. On 9th January, the rand supposedly traded stronger during the European Trade. After trading in the ranges of R14.42/$ - R14.68/$, we can only be positive as a country that this will open to the inflow of investments, allowing the country to raise enough capital to fund any debts.
More so, droughts, weak agricultural and manufacturing output, and poor consumer spending will need to remain well managed. This includes the country keeping hope that the currency will keep strengthening against emerging and developing economies.