May 23

Warwick Wealth Matters – May 2023


Before introducing the good news for our clients, we have to reflect on the fact that, at the time of writing, the South African Rand is the worst-performing major currency globally, having shed over 9% for the year to date. Unemployment is on the increase, inflation is stubbornly high, the cost of living is reaching a crisis point and Eskom is forecasting stage eight power cuts through the winter months. As if this were not enough to contend with, our foreign policy is alienating many of our major trading partners and we seem incapable of delivering on the core economic reforms recommended by international financial institutions and sought by sovereign ratings agencies.

But it’s not all doom and gloom. Government has recognised that it is incapable of solving many of the challenges for which it is solely or largely responsible. While government’s ‘look East’ and ‘build the BRICS’ orientation is far from yielding positive results, the local private sector is stepping up and stepping in to tackle a number of our challenges, particularly in energy generation. Indeed, for the first time in recent memory, the South African business sector is finding its voice in speaking truth to power. While antagonistic relations between government and the private sector are not in anyone’s interests; it is in government’s own interest that it creates an enabling environment for business to do what it does best.

South Africa is endowed with fabulous and abundant local talent and a number of companies that are the envy of the world. So, as a first step to local economic recovery, we need government simply to govern capably and let the private sector get on with sustainable wealth creation and job creation.

Notably, Warwick took the strategic decision a number of years ago to diversify our clients’ investments internationally and today that important decision leaves our valued clients better positioned to weather the local and international buffeting from the headwinds of high inflation, low economic growth and geostrategic tensions.

Amidst all of this, Warwick has been hard at work developing new, best of breed systems for client take-on, client reviews and client investment portfolio statements which are featured in this month’s Warwick Wealth Matters. This is a major development and service enhancement and we trust you will enjoy the benefits of our continuous improvement and commitment to you, our valued client.

Until next month, please take care and do not hesitate to contact us at any time.