By John Ackermann, founder of SARDA. The cost of all road transport, rail transport using diesel locomotives, agricultural tractors and mobile construction equipment is escalating rampantly while nations stubbornly battle for dominance in the Middle East.
Image supplied by John Ackermann
Thank goodness for private enterprises that continue to trade and provide food security for the nation and luxury delicacies on the plates of the battling political leaders. Is there an end in sight? The only surety that we have is the resilience of private enterprises to keep the economy alive. Although the national consumption of fuel has declined – probably due to the saving efforts of motorists and logistics operations – the number of new road tanker operators seen on the road delivering fuel is confusing. One would have expected fewer operators and a switch to alternative sources of income.
The overall economy appears to be volatile from one week to the next with unforeseen events all having a negative influence – for instance, heavy rains and flooding resulting in massive insurance claims; the fight against foot and mouth disease in our livestock and the race to import vaccines from overseas sources; the flare of xenophobia violence in areas of South Africa. Last week, bombs were also planted in Woolworths retail outlets. Who can guess what is next? With municipal and provincial elections set for 4 November 2026 (and another public holiday), we can expect the politicians to rapidly respond to all appeals from citizens for assistance to long outstanding issues to canvas votes. Some may even pull some tricks out of their hats and bring economic relief to households and even business, particularly those in the SME sectors. A change in the repo interest rate may also be considered another damper to the economy.
Notwithstanding the extent of the volatility of the economy, a well-managed cash flow in any business is a guaranteed lifeline. Those that provide the poor excuse for not paying their suppliers or service providers because they have not received payments from their customers, are to be avoided at all costs. The knock-on effect down the line is devastating to the economy. Many small businesses have ceased trading and paid off staff to add to the high level of unemployment – presently exceeding 40% – because of bad debts. Ethical businesses which settle their debt timeously are handsomely rewarded with sustained growth and the benefit of a healthy cash flow without the costly and time-consuming efforts of debt collection.
Stepping back for a moment to ponder on inventions that have impacted on our daily lives and the way we conduct business during the previous three decades, the cell phone dominates all other ingenious inventions. The electronic expansion valve, the concrete dolosse (a large, interlocking concrete block used on coastlines, harbour walls and breakwaters) to prevent erosion by the ocean, the kreepy krauly pool cleaner, the microwave oven, the ECM motor, the A4 size tablet, the litho printing process. The list goes on and on, but it’s the cellphone that has dominated ever since it replaced the pager as a form of communication. With a cell phone, video calls are made across continents. No matter the location, calls for assistance in emergencies can readily be made. Boarding passes at airports are presented on a cell phone. Dinners and meetings, no matter how important, are interrupted by cell phone calls. Even beggars at traffic intersections are seen talking on cell phones. Many crimes have been committed to gain possession of a cell phone. School children, from a very early age are seen glued to cell phones instead of enjoying outdoor activities. Domestic workers and gardeners often spend more time on their cell phones than being productive for which they are being reimbursed. The cell phone is a marvel to aid our daily lives and hopefully will not dictate how we live nor impact adversely on productivity, a vital element for a thriving economy.