South Africa’s trade balance for March 2016 came in at a surplus of R2.9bn after February’s deficit of R1.1bn which was not in line with market expectations, according to from Karl Gotte, head of Standard Bank commercial banking.
“The economic landscape currently presents numerous challenges for consumers and businesses.
The challenges will most likely be seen in commodities and food prices. Manufacturing commodities such as coal, copper, iron ore and steel prices are expected to fall further during the course of the year. Due to the impact of the drought, food prices are anticipated to increase by 20-25% in the medium-term. In addition, it is expected that a petrol price increase in May will negate the gains that have been made by the rand over the past few months.”
Gotte says these external pressures are forcing businesses to think differently about how they work and how to manage the ever-increasing cost margins. “Businesses need to focus on minimising financial wastage to ensure the sustainability of their current operations. They also need to take a longer-term view on investing to ensure long-term sustainability.”
