The Governor of the Reserve Bank, Tito Mboweni, has left the interest rate unchanged. Many commentators felt that there was quite a chance that he would lift the rate as inflation remains a risk. But it seems that the committee are comfortable that the top of the inflation curve is foreseeable, whereafter it will start to gradually decline. The risk is still an external shock like an upward surge in the oil price or dangerous political turmoil. Should that happen, Mr. Mboweni will not hesitate to increase the rate again.

It seems that the upward trend in the interest rate curve has been reached, being that the international trend in increasing rates has also started to slow. That bodes well for the economy in its training phase up to the Soccer World Cup in 2010, and we might well see the economic momentum starting to show more kicking power in 2008.

If South Africans can now really start to stand together (just watch out for the fireworks towards the ANC’s election of a new leader later this year) and all join in to generate the momentum towards the great event in 2010, the economy can really fire up. One can expect the visitors to our country to increase handsomely and the effect thereof will flow to all the various sectors. Property can once again experience an upward surge, seeing that even in recent slower times the prices stood ground rather firmly. The main thrust will most likely come in areas with tourist attractions but also near the various sports stadiums. But the "feel good" momentum will spread much wider.

It is quite clear that the Government has a new drive to steer the various departments to better efficiency and we all can, with a little help from our friends, look forward to a very special time that can linger long after the Soccer World Cup. Tourism with its tremendous potential in this county can contribute strongly to an ongoing growth era where more and more jobs will be created right through society.

Wim van der Walt
12 April 2007