Renico Newsletter- March 2025
Category Newsletters
I often compare the running of a country to that of running a business. Almost daily decisions must be made to build and further strengthen the business. Some of these will be tough decisions which may not affect everyone equally but are necessary to achieve the required results. This is done to grow and strengthen the business which will be beneficial for everyone within the company.
Proper fiscal management is of the utmost importance as money is the 'glue' that keeps the business together. Managing income and expenditure, coupled with a well-prepared budget, are the pillars of strength of any successful business. When tough economic times are the order of the day, expenses must be checked and cut where possible.
This is exactly where the South African Government is finding itself now. It is the perfect time for our Minister of Finance to cut unauthorised, irregular, fruitless and wasteful expenditure. This must be done before they try to tap into the already over-extended SA public by increasing an existing tax or by introducing a new tax burden.
Enough is enough.
With our inflation rate creeping up above 3%, rising fuel prices and a possible hike in our VAT rate, South Africans might just be in for a bumpy ride. I for one do not expect a further cut in the prime lending rate when the MPC meets later this month. We have come to know the Governor and his fellow committee members for their cautious approach towards the management of the interest rate and with all these external factors pointing to further increases in inflation, no further cuts are likely to be actioned if the rate hovers north of the 3% benchmark.
Last month I reported that the first roofs had been erected at the Fernhill residential development in Bryanston. I am happy to report that, weather permitting, the last of the twenty-eight roofs will be put in place this week. Our marketing team have also been busy. With more sales concluded this past month they have reduced the number of available homes to thirteen.
Although hampered by the constant rain of the past weeks our team achieved substantial progress at out iThemba development in Albertsdal and the installation of bulk water and sewer services is now almost complete. We are also hard at work to have the show home completed this month and I am told that the kitchen and bedroom cupboards will be fitted early next week.
Construction work on the homes in the next phase of our Riverspray Lifestyle Estate on the banks of the Vaal River was also severely affected by the weather conditions of this past month. This week we will have another group of clients take ownership of their brand-new family homes within this stunning lifestyle estate, yet another successfully completed Renico project. I wish them well with this new and exciting chapter in their lives.
The first earthmoving machines arrived at our Elemente and Uitsig residential sites yesterday and they immediately started with the clearing of the Elemente site. The continued widespread rainfall is bound to hamper the progress in Potchefstroom too, but we stay positive that we will have the site cleared and ready for the first construction teams who are scheduled to arrive there by mid-March.
Author: Nico Louw
