Commercial property boom in South Africa
Commercial property in South Africa is rebounding strongly, offering high yields, longer leases, and low vacancies, but experts caution that successful investing involves weighing a number of factors.
Several businesses have already begun scaling back production. Some have put expansion plans on hold, while others are preparing to shut down operations entirely.
Breadwinners fear retrenchments, while businesses fear their new uncompetitiveness in the global market.
According to economist Professor Ronnie Ncwadi, government intervention and market diversification are the only things that can save the Eastern Cape economy and maintain the world trade order.
Ncwadi says they need government intervention in terms of a fiscal push to assist them in subsidizing small businesses.
"Also, what we need to do is to diversify our markets, make use of the fact that we are part of bricks plus, and also because of the African free trade model, we need to make use of those opportunities to find new markets where we can sell our products to keep a floating business. So, in order not to shut down, I think those are the opportunities we can start to look at now. What is important as well? What to encourage is to de-dollarise, you know, not to let us depend on the US dollar, where we encourage the use of our local currencies to conduct trade,” explains Ncwadi.
Video | Some E Cape companies consider ending local operations:
