South Africa finds itself in a situation where increasing export revenues is a necessity for sustainable growth.
South Africa has become locked in a cycle in which fiscal deficits have averaged about 5% of GDP.An economy continually adjusts to new realities. Given the inflexibility of the economy, the rand exchange rate has to bear the brunt of this adjustment process.What is most concerning is that we cannot count on a recovery in commodity prices any time soon. Commodity price booms, such as the one we have recently enjoyed, are infrequent events. New ideas and actions soundly based on economic realities are needed to generate the higher growth rate SA desperately needs. This scenario is very common in the region and countries with weaker economic policies will be hit hard.
However, this does not mean that opportunities will not be there. There are so many companies who have thrived in difficult times. The Rand is under pressure, especially for importers in South Africa.
We have set our goals right for MMCS and we have started the year knowing that only maximum effort will be acceptable as the economic outlook is not favoring anyone. We have doubled capacity and reduced our cost base, ensuring that our customers don’t get affected negatively.