CoronaVirus

The silver lining around the Coronavirus cloud

The world seemed to have turned on its head since the outbreak of the infamous Coronavirus. However, despite the economic turmoil as a result of the Coronavirus’ negative impact on global markets, there are a few sliver rays, shining from the Coronavirus cloud:

The Yellow Brick Road

Commodity markets have seen an increase in the price of gold, which increased to $1700 an ounce on Monday 23 March 2020. A gauge of South African gold producers climbed as much as 8.4% to the highest price since 2002.

Got to break free

A disruption in China has an accumulative effect on the South African economy. As a result, this pose an opportunity for South Africa and other countries to be less dependent on China and become more economically independent.

A sigh of relief

The South African Reserve Bank’s (SARB) has made an announcement to reduce the repo rate by 100 basis points – this has given many South Africans some financial relief. A bit of extra disposable income is now at hand since car and home loan re-payments have been reduced.

More than just numbers

Here are a few other positive changes and opportunities:

  • Many South Africans are becoming more techsavvy and this increase the demand for businesses to utilise all of those tech-savvy skills to deliver excellent digital solutions.
  • There are currently less cars on the road since more people are now working from home or staying indoors. This will result in a decrease in car emissions and accidents on the road.
  • Many people are becoming more health and hygiene conscious which is a good thing because it does not only curb the spread of the virus but also increases the quality of wellbeing amongst all people.

We are still open and ready to serve!

At Iemas, we are still open for business and our consultants are ready to assist you. If your employer has a contract with Iemas, then you can apply for our financial services and solutions from the comfort of your home. Visit www.iemas.co.za, click on the “Apply Now” button and fill in all the required information.

Sources:

  • https://www.moneyweb.co.za/mymoney/moneyweb-tax/sas-market-in-the-red-gold-price-heads-to-1-700/
  • https://thediplomat.com/2020/03/chinas-coronavirus-slowdown-which-african-economies-will-be-hit-hardest/
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