Let’s ride the upswing sensibly

WITH a general election looming where power shifts will decide economic stability, the complex, sensitive and volatile issue of land expropriation without compensation has arisen.

Recent newspaper reports of upward swings in trade and manufacturing augur well for the future.

With urbanisation taking place at an unprecedented rate, shopping malls are popping up everywhere and big retailers are snapping up tenant leases.

Pick n Pay’s shares rose more than 10% on the JSE as they announced a trading profit increase of 4.9% to R1.82billion, according to The Mercury

Business Report on April 20.

A total of 13700 jobs were created in this period and they anticipate creating 15000 more as they roll out new stores.

Another big league retailer, Clicks, also revealed an ambitious growth strategy as they declared a R14.4bn increase in turnover in the last trading year.

It is encouraging that they intend to surpass their own expectations to open new stores this year, from their initial 20 to a now-anticipated 30.

South African companies are wasting no time with acquisitions and diversifying interests to meet growing consumer demands in a fast-paced society.

With the inclusion of Alliance Medical in their shopping cart,

Life Healthcare expects revenue to surge 18.5%.

And the dual-listed packaging and paper group Mondi has announced it has signed an agreement to acquire 100% of the outstanding shares in Egyptian company NPP, which will make it a dominant player in the Middle Eastern market.

In the May 2 issue of Business Report, South Africa’s March trade surplus was recorded at R9.47bn and there was a positive forecast for the rest of the year after expectations were beaten by R6bn.

Despite all this good news,

The Independent on Saturday’s Personal Finance (May 5) warned that feeling confident about the economy shouldn’t be a green light to spend as vulnerable consumers could easily get caught up in debt.

Our biggest problems will remain good, clean governance, affordable and sustainable education and health care, and the persistent scourge of unemployment.

While the economic indicators point to happy days ahead, the government, investors and big business need to make a concerted effort to annex and retain the autarky which can be ours.

KEVIN GOVENDER

Shallcross