VAT hike, Trump tariffs, instability of GNU and volatile rand: how does this impact SA business?
The rand traded below R19 to the U.S dollar on Monday, having edged close to R20 a week ago.
Value-added tax, VAT. Pixabay/Mohamed Hassan
Stephen Grootes speaks to Alan Mukoki, CEO at the South African Chamber of Commerce & Industry (SACCI) about the rand's recent strengthening against the U.S dollar, and whether the potential scrapping of the VAT increase has had any impact.
Listen to the interview in the audio player below.
What a difference a week makes in the world of finance, hey?
On Monday, the rand hovered around the R18,85 mark against the U.S dollar, remaining below the psychological mark of R19.
Less that a week ago, the rand appeared a lot weaker, and in a fragile state.
At it's lowest point this year, the rand traded at R19,93 to the greenback on Wednesday 9 April.
So what's been behind the resurgence in the rand, and can it be sustained, or will the drama around South Africa's GNU and more reciprocal tariffs from the Trump administration
Speaking to Stephen Grootes on The Money Show, Alan Mukoki, CEO at Sacci says the uncertainty and instability of global markets and local & international politics makes it extremely tough to forecast economics.
"Volatility, uncertainty, complexity and ambiguity all at the same time happening. And I don't necessarily think that our leadership, even in the business community or elsewhere in the political environment. I don't necessarily think we're ready. We don't have the level of development that we would've had to deal with situations such as this one. So these things are all happening at the same time, it's overwhelming."
- Alan Mukoki, CEO - Sacci
"It would have a very destabilsing effect because nobody knows what's going on. People are trying to plan, but they don't know what the plan looks like, because you don't know what the numbers are going to look like."
- Alan Mukoki, CEO - Sacci
"The most disturbing feature of it all, is that there is going to be a negative impact on sales, because we know everything goes up in price."
- Alan Mukoki, CEO - Sacci
Scroll to the top of the article to listen to the full interview.