New chapter

IT IS that time of the year again when we all look forward to having a good one and gaze optimistically to the year ahead to change our fortunes.

We try to look forward to what the year has in store and to predict which things will dominate the news and what will happen. I am sure many of you have given up on setting new year resolutions as the last ones disappeared like mist on a summer morning. Do people still go through the process of making resolutions at the beginning of the year?

I do not, but those who feel that resolutions have a place in their lives must feel free to do so and good luck to them. Now let me look into my crystal ball and predict what might unfold in this new year.

By all accounts our economy is critical but stable so the year might be a tough one economically. The slide of the rand has ensured that the record low price of crude oil is not translated into a much lower petrol price. This does not look as if it will change soon. So what will that mean for our pockets? Food prices will go up dramatically, especially now that the drought has tightened its grip on our country.

By all accounts the interest rates will also be going up, by what percentage point no one can predict. For those who do not know, the interest rate is the cost of borrowing money.

Let us say you get a loan of R100 000 from the bank at 12% interest per annum that means you will pay back R12 000 extra if you pay it back within a year. So an interest rate increase will mean you will end up paying back more. On the other hand for those who have money saved in a bank it means they will get more interest for their money.

I am sure you have noticed that I have resisted the urge to delve into politics and what 2016 has in store for the major political players. I believe there will be plenty of opportunities for that in the coming weeks so I do not want to usher in the new year with it. I have also avoided talking about the matric pass rate as I believe that I need to allow it to sink in first before delving into it substantively in the next weeks.

I am also not going to talk about the big race row that has got our country into a tail spin. I hope we stop this grandstanding and tackle this issue head-on once and for all. With that, let me wish you a prosperous new year and hope that your plans, if you have any, will succeed.