Economy/business
Trends:
- Our economy contracted ever so slightly in the first quarter, but there is hope: the predictions are that our economy will pick up in the second half of the year, with Nedbank predicting a 0.9% GDP growth for this year.
- The SARB business cycle leading indicator is trending downward, which could point to worsening economic times.
- The above predictions mean that we will still lag average 2024 African economic growth, which is projected at 4%.
- Our second-hand vehicle market has normalised, with an average (of a R1m or less) vehicle depreciation of 7% per annum.
- Several graphs are available from Codera are available illustrating employment composition (formal/informal sector, SA self-employment figures compared to elsewhere, and business numbers by business size:
- Where do new “Gautengers” originate from – mainly foreigners?
- The City of Cape Town has planned an infrastructure spend of R39.5bn – more than all three Gauteng metros combined – and should yield approximately 130k construction-related jobs over three years. Attaboy!
News to note:
In the space of two years, there have been 11 oil discoveries off the Namibian coast. On our coast, exploration has ground to a halt, on the back of environmental concerns.
This had to happen: Eskom has, for some time not allowed any white male on to any employment shortlist and got taken to the cleaners for unfair discrimination.
So, how does your business stay abreast and innovate – bit by bit? Consider this: https://talk.businesstech.co.za/real-world-strategy-dialogues/episode/1
Practice
News:
- Good!
- A number of senior DOJ officials have been suspended, including Masters of the High Court, Pretoria and Bloemfontein.
- The former SABC head, Mr Motsoaneng, has lost his appeal to retain his pension payout.
- No, I am not punting this, but it came to my attention that Rodel has started a trust and case management system for beneficiaries of disability awards – worth noting.
Hard news:
- Trusts are often used to hold assets of spouses separate from accrual sharing – the following article is worth reading in this respect: https://www.derebus.org.za/driving-divorce-navigating-trusts-as-a-vehicle-for-matrimonial-asset-division/
- For specialist labour lawyers only – reinstatement of employees whose posts were declared redundant: saflii.org/za/cases/ZACC/2024/8.pdf and, https://bowmanslaw.com/insights/south-africa-groundbreaking-judgment-constitutional-court-rules-on-labour-court-jurisdiction-in-large-scale-retrenchments/
- Do consider the following article on restraints of trade, coupled with a penalty clause: https://www.adams.africa/jac-marais/effective-restraints-of-trade-and-the-added-protection-offered-by-a-penalty-clause/
Conveyancing:
- Specific performance orders are rare; in the following case such an order was given where a pre-incorporation sale agreement was entered into and the promoter was held liable in the absence of performance by the to-be-formed company: http://www.saflii.org.za/za/cases/ZAGPJHC/2024/525.html
- A performance guarantee is an obligation to pay upon the happening of an event, which event can be wholly independent of the underlying contract. A claim, based on such a guarantee, may be avoided if fraud is involved – see at paragraph 18: http://www.saflii.org.za/za/cases/ZASCA/2024/86.html
Property:
Trends:
- The sentiment, expressed above, that our residential real estate market is showing positive signs, has been reinforced by the ABSA’s Homeowner Sentiment Index for the first quarter of this year, which recorded a significant quarter on quarter sentiment growth. Investing sentiment increased to the highest level since the first quarter in 2021. This includes a rise of 8% in buying sentiment, as opposed to renting.
- Looking at the following graph it appears that the above sentiment is not misplaced:
How does one extend the footprint of your sectional title unit? https://www.phinc.co.za/OurInsights/ArticleDetail.aspx?Title=To-extend-or-offend-Can-you-extend-your-sectional-title-unit?
One often finds that HOAs charge a fee for ‘accrediting’, agents; if this is accompanied by a high fee, you might want to read the following article: https://businesstech.co.za/news/business/773474/warning-for-estates-and-gated-communities-in-south-africa/
Agents – more on oral mandates – bottom line; get it in writing: https://www.dotnews.co.za/Code/Article.aspx?qry=yKPR5eDKNlaukY9Ps7iCgzfZnj75M1W7jn9WB5tCMp5KjFJdiNWpnz0FcUuo3HSwjcLVKp_Xdb2YGaIPuEmEClBUqndj94LJwalaKSupOmw=-NOPAD
Comment
“Education is the key that unlocks the golden door to freedom.”
Carver.
I chanced across an economist’s comment on, what I gather is called the Tocqueville Effect, i.e. (somewhat broadly) the rise of expectations within a downturn which gap becomes intolerable and sets the stage for rebellion against a social system. The writer uses as an example what he terms an elite overproduction i.e., in this context, the production of highly educated people who cannot be employed within the USA. On enquiring further, I found the following graph, showing the number of tertiary degrees awarded nationally, in South Africa.
Street narrative holds that we appear to be producing more graduates than our economy can accommodate. Coupled with the NSFAS debacle, which promises (free) opportunities, which do not materialise, I have been wondering whether our highly educated but unemployed citizens would rise up in protest? Comment?
Lighten up
“I’m a philosophy major that means I can think deep thoughts about being unemployed.”
Bruce Lee
Written by: Daan Steenkamp
https://www.daansteenkampattorneys.co.za/
Still looking for your dream home, or wanting to sell? Feel free to give one of our developers a call today.
Tom Eastwick – The Gates, Hilton and Garlington, Hilton | 072 297 2699 | tom@devdirect.co.za
Janet Channing – Waterford Residential Estate, Howick | 082 570 5834 | janet@devdirect.co.za