June Theme: Kasi Youth and Clubs
Economic Conditions - Be wise
THIS IS A TIP AND ADVICE PLS PASS, PASS, AND PASS
Hi Guys,
It has come to my attention to really warn you as my friends and family of the current economic conditions we are facing in South Africa and the rest of the world.
Yesterday I attended a Absa conference whereby Tito Mboweni was our guest speaker.Tito Mboweni has made it clear to us that the worst is yet to come so we must tighten up our belt in terms of getting into debts. Before I start with the really figure he made an example to us that if a person goes to KFC to buy chicken using his Credit Card for an amount of R40 this implies that in the 6months period you have bought the chicken for R72. Most of us did not know this but this is true and He gave us advice to STOP USING CREDIT CARD AS REASON THAT YOU DON'T HAVE CASH.Only use credit cards for things that you really need.
The real situation now we have these reports that we do for the reserve banks whereby we forecast the future using certain drivers and getting the economist analysis which is called Medium Term Plan for 2009-2011.
It's basically a three year plan.
1. It show that the interest rate will go up to 19% ( currently we are at +-14.5%) from now up until 2010 just before the world cup. Good news after the world cup it will decrease.
2. The inflation( unemployment) will go up to 12% (currently sitting at +-6% )
3. The GDP( Basically your food staff) will increase by 15% I'm not sure what it sitting at now.
4. The petrol will also increase up to R13.78 per litre and diesel to R15.05
What causes this? If you want to know.
1. The political instability of the country( investor's perception of the new President of the country)
2 The scarcity of resources i.e. low output on gold,farming of rice etc
3 Lack of skills labour in the country
4 Unemployment
To add to this on the March financial statement Absa profit has drop by 10% and as of the month of March Absa will repossess 700 house in the country. Absa will employ about 1500 staff to work at collections department as our impairment of assets(bad debt ) is increasing very fast. This has bee approved by Exco so we waiting for the appointment of the employee agent to recruit those staff. So ama private numbers asazokhala emafowunini abantu.
Elami lithi for now and next year Do Not engage in instalment sale transaction for no reason you must really ask yourself do you really need that.
So guys that was it with me hope you will take this changes into your budget for this year and next year.