|Inflation is gearing up to get out of control.....Zimbabwe
here we come! The importance for you as a foreigner is to make sure you
don't change to ZAR travellers cheques or something bright. Keep your
US$, Euro, whatever.
April 2009: Repo is 9,5%, Prime rate 13%, banks still make 3,5%.
Unemployment is around 50%. Government claims 27% The diffs are the muggers, hijackers etc - they are gainfully employed!
Inflation rate claimed by the Government - apparently around 11%, but realistically around 30%. We all see prices rising dramatically from month to month - 410g peanut butter from R6 to R14 in 1 year, 200g Nescafe coffee from R30 tp R46, dogfood, black refuse bags etc etc all more than 50% increase in the last year. It has an incredible knockon effect on absolutely everything.
Real Inflation rate - ave over years - somewhere between 13 & 18%
Note on the Rand/$ I take the longer term ave, like I should!
This is still a good time to come to South Africa; if you are looking at stability and infrastructure.We need your $! BUT, it will cost you more than 3x what it would have cost 9 years ago.In Jan 02 the 1$ was 12,2 to 1ZAR. The average price for a budget 4 day Kruger camping trip was R1850. The same trip will now( April 09)cost you R4800, a 11 % year on year increase in Rand. However, the $ is now R9,78 (April 2009). So, the same trip went from US$152 to US$ 493 in 9 years , an ave 14% yearly increase for foreigners. Been wondering where the tourists have gone right? Don't; it's more affordable for them to go to the loo in another country....
And yeah, right, inflation is 10%! This government manipulates the rand and always overcompensate. They have stated that their target is to value the rand at R4,5 to 1 US$ so coming here might even get more expensive in 2009. I believe they have fluffed it and will have to stop interfering. Unemployement have increased radically, unions are striking for months on end with strikers killing non strikers, planned xenophobic action, and tourists are on the endangered species list..... But then the Goverment have always said we are a "stable" country......and of course we believe what they tell us! And there is no crime...that is why old Thabo was building a multi million Rand security wall. This is now on top of the 80 person entourage he carries with him. The collapse of the Rand would be welcome if it means coming here will get more affordable for you - this is what we all want ( the tourists, not the collapse:) ). This is now if you can get a flight with a non striking airline.......
I'm not an economist and I 'm probably wrong! But then
I can't be much more wrong than some economists have been lately! If
you want to come to SA in the next couple of years 2009 is probably a good time.
2010 won't be as the Gov would want the ZAR strong as to maximize the income
from the Soccer World Cup.