ROUND UP OF 2022

R o u n d u p o f 2 0 2 2 Round up of 2022

What went up, came down and what went down – well who knows where it went. This year has again been a unique experience – one that we are keen to put behind us.

This year has been a challenging one for many businesses and for most people. After two years of various pandemic protocols and learning to work remotely, restrictions were lifted and the majority of the workforce went back to the office.

Aside from having to reintegrate back into office mode and learn how to be social and wear business attire rather than pyjama pants and a t-shirt, many workers returned determined that they should be compensated for going the extra mile. On the other hand businesses felt by and large that employees should be grateful for having a job and a stalemate ensued. This resulted in the advent of quiet quitting which posed a further challenge to employees and businesses alike.

Added to this we saw loadshedding take off with a bang and despite numerous reassurances that things would get better, toward the latter part of the year, Eskom management finally mumbled that things were far from under control and loadshedding would likely be the status quo for the next few years until solar power plants could be established to take up the slack. After fifteen years of this merry-go-round, consumers never for a second believed that the power crisis was anything other than that – a crisis. 2022 has seen loadshedding at its highest since inception.

The fuel price then decided to join the party and aim for record highs, and the pressure on motorists and businesses caused prices to soar and inflation to rise. Whilst the fuel levy was reduced for a few months to help alleviate the financial pressure and curb the rate of inflation, this has all resulted in unforeseen costs that as expected trickle down the chain to the end user or consumer.

We have had an interest rate hike every other month since November 2021, the last two of 75 basis points in both July and September and economists are forecasting another hike for the end of the year and estimates are betting on 100bp. The current repo rate is 6.25%. This in turn will put more pressure on consumers and home-owners as well as anyone with debt.

Failing state owned enterprises

Add to all the domestic joy, Russia and Ukraine went to war in February. The why can be postulated, and there are several theories, the most credible is that Ukraine wanted to become a NATO member, something which did not sit well with Putin. However, even after Ukraine’s president, Volodymyr Zelensky, said that he would not pursue this course, the war continued and is still going. The instability in the region and subsequent sanctions and travel bans for Russia has resulted in fuel shortages and other issues for Europe, now in winter.

China has continued with Covid lockdowns where the rest of the world has gone back to work. This has resulted in supply chain issues mostly for but not limited to technology related supplies. The IT industry in South Africa have had to think fast to ensure stock availability and parts. Other industries affected by the continuing lockdowns have collaborated to assist each other so that business can continue and a paper shortage caused the industry some concern.

From a SHOP-SA perspective, change was definitely afoot this year. Hanlie Delport was appointed as COO, Hans Servas retired as Chairman of the Board, DTP-guru Vanessa Bentley left to pursue other interests and this issue will be last one where we are assisted by Wendy Bezuidenhout as advertising and marketing manager. Flux and change seem to have been the order of 2022.

Anton Herbst from Tarsus resigned his position to follow another path away from IT and so our industry has seen a fair few changes. On a positive note PNA opened several new stores and celebrated their 30th birthday with the opening of their new head office, and we had a lovely time connecting in person at the Office National Conference and exhibition in July.

2023 will be a new year with some old challenges and some new, there will be more change and business will evolve but the wheels will keep turning. Something that Anton Herbst mentioned at the SHOP-SA AGM appears to have a ring of truth and seems now to be the most likely recipe for survival: unlikely collaborations and partnerships are the way forward, collaborating to offer the best solution to a client, even with a competitor, will position the brave above the ordinary and will open new markets to mutual benefit. Maybe next year we can embrace our differences and collaborate to support each other to create symbiotic partnerships that benefit our clients and ourselves. �