The right attitude makes all the difference. During the Eskom crisis last year Alan Knott-Craig, managing director of the internet service provider iBurst, wrote an inspiring letter to his staff, pointing out the good things South Africa has to offer. This year we’re faced with a global credit crunch, and Alan had to remind his staff again that things aren’t that bad and that the grass isn’t really greener on the other side.
I’m writing this because I get the impression there are some depressed people around. So let’s recap. At the beginning of 2008 people were panicking about the oil price, inflation, electricity and the economic recession. Of those big four concerns, three have taken care of themselves: oil is now below a barrel, almost one quarter of the price of four months ago; inflation isn’t such a big deal because oil is cheap nowadays so food and other costs are falling; and we haven’t had any crazy power outages since February. The Eskom saga is a complete mystery to me; the newspapers said it would last four years.
Now the fourth. What about the recession? Well, as it turns out that was something that deserved panic. Especially if your name is Dick and you run a New York investment bank. Fortunately we don’t have any Dicks at iBurst.
We’re not all doom and gloom
After the merry-go-round of bad news at the beginning of last year, capped by xenophobic attacks, it’s been quite surreal to watch the u-turn executed by those heading for the exit door. It’s a bit like watching naïve tourists run into the sea off Camp’s Bay, screaming in pain and then racing back onto the beach. The water looks so nice, but don’t go in there unless you’re an Eskimo.
Suddenly foreign shores aren’t as attractive when there are no jobs, no credit and no sunshine. People who left are returning to tell those who haven’t left not to go.
Just to put a couple of financial things into perspective: the loss of value on stock markets around the world as of 10 November 2009 is as follows: Iceland -89%, China -64%, Russia -64%, India -48%, Hong Kong -46%, Brazil -40%, Japan -40%, USA -36%, Australia -35%, UK -32%, New Zealand -29% and South Africa -26%. In comparison South Africa wasn’t so bad? I’d rather be here than in Iceland?
Sunny South Africa is certainly not immune to the global economic crisis. Our companies are suffering too, which means fewer bonuses and more retrenchments, always a winning recipe for unhappiness. How long will it last? Who knows, but brace yourselves for a tough 2009. The good news is that after every tough time comes good times. We all have something to look forward to. What is the silver lining for South Africa? Our interest rates are still high, but will decrease soon to ease the burden on your back pocket. The UK and US don’t have that luxury, their interests rates are already too low to cut.
What else? “Mad Bob” can’t last forever. When he heads off into the sunset there will be an absolute bonanza of investment and aid flooding into Zimbabwe and a large chunk via sunny SA. Oh happy days. Who said there were no plusses to having a failed state as a neighbour?
Up and coming
Anyone noticed the cranes? Seen the Gautrain progress? I went down to Cape Town two weeks ago and virtually the entire highway is under construction. Durban has a new stadium, a bigger harbour and a new airport all to be finished in the next 18 months. The unintended consequence of government procrastination on infrastructure investment over the past 10 years is that now it’s just in time to prop up our economy. You gotta love those bureaucrats.
And the Soccer World Cup is coming. If we get it right we’ll be the hottest spot on the planet and have a real shot at hosting the Olympics in about 2020. But don’t crack open the champagne just yet. Your average Yank may be swapping his house for a trailer, but at least he’s not worried about being shot in the head on the way to his next job interview. If any of you have a relative or friend in government, pass on this message, “crime is out of control and most of our schools and hospitals are in disarray.”
Don’t for a second fool yourself in thinking we can ignore structural problems and live the rest of our lives in blissful ignorance. We must constantly remind politicians to do their jobs, but we can’t absolve ourselves of our responsibility to make individual contributions. It’s our business to make this country a success. Report crime, pick up litter, give to the needy, create jobs, look after children, practice safe sex, drink filter coffee. We’ve all got a responsibility to make the magic happen, otherwise you’ll just end up in bed in 50 years’ time, looking back saying “what if”? The time of opportunity is upon us, it’s up to us to seize the day. Life is not about waiting for storms to pass, it’s about learning to dance in the rain. Looking forward to dancing in 2009!
Contact iBurst on (011) 676 6444. |fw
