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SA’s economic crossroads: Crisis or recovery?
Government debt is approaching 75% of GDP, with interest payments consuming nearly 20% of state revenue. South Africa’s economy is at a critical juncture. While many signs point to ongoing structural decline, recent policy shifts and economic activity indicate a possible slow recovery. The key question remains: Will SA continue its downward spiral, or can it stabilise and grow?
Culture’s role in shaping capitalism
Economic development is often examined through the lenses of policy, technology, and finance, but the influence of cultural norms and values cannot be overlooked.
Cultural attitudes shape how markets operate, businesses function, and individuals engage in economic activity.
Musk’s political rise …
Recent articles in major outlets have debated the implications of Elon Musk stepping in as President Donald Trump’s second-in-command. Some worry that this development signals a backdoor coup, a private-sector takeover of democracy, or a power play designed to boost Musk’s fortune.
Yet a close examination of Musk’s track record paints a different picture. An exploration of the most common criticisms surrounding the Musk/Trump partnership illustrates why it could usher in a more innovative and robust economy, both at home and abroad.
Missing the moment in a changing global economy
Worldwide, economic powerhouses and emerging markets are reinventing themselves by adapting to new trade patterns, fostering tech innovation, and leveraging financial liberalisation.
South Africa, in contrast, often appears caught up in an older paradigm, struggling to enact policies that spur job creation or attract robust foreign investment.
Global economic outlook: Steady growth with persistent challenges
The World Bank projects that the global economy will maintain a steady growth rate of 2.7% in 2025 and 2026, consistent with the previous two years.
While this stability is noteworthy, the growth rate remains insufficient to significantly alleviate global poverty, particularly in developing economies where sluggish investment, high debt levels, and the escalating costs associated with climate change present formidable obstacles.
A look at local listed property
In 2017, after an almost decade-long boom, the local listed property sector abruptly swung into a 3-year decline. Underperformance, due to a 20% appreciation in the Rand (on an index generating almost 40% of its income abroad), was followed by reports of share manipulation and misleading statements by the Resilient stable, which comprised nearly 40% of the index, resulting in share prices falling up to 65%. Shortly thereafter, we experienced the COVID pandemic. The index fell 55% amid lockdowns, work-from-home policies, and low levels of landlord pricing power.
The media mirage: Lessons from the US election’s unseen realities
The recent United States (US) presidential election, with Donald Trump’s landslide victory, has highlighted a stark disconnect between traditional media narratives and on-the-ground reality. Many mainstream channels projected Vice President Kamala Harris as the likely winner, shaping public sentiment and investor outlook. However, when results rolled in, the disparity between predictions and outcomes sparked a wave of doubt around whether the media truly serves to inform or merely to perpetuate agendas.
The illusion of prosperity: America’s fragile economic boom
As the United States (US) focusses on the results of the presidential election, America’s economic success is front and centre. The US economy has grown nearly 3% on average for nine consecutive quarters, and foreign investors have eagerly poured capital into American assets. This influx has pushed the US’ share of the global stock market to an unprecedented 60%. But behind this image of prosperity, there is a reality that is less glamorous and far more troubling. For many Americans, this growth feels distant, as most economic benefits remain concentrated among the affluent.

Your Partner in Financial Services
Efficient Wealth provides a host of personal/business related financial services and value added benefits via its own internal resources and in partnership with a number of specialist financial services providers. Our objective is the provision of an array of “best-of-breed” products and services to meet the diverse and ever changing needs of our individual clients as well as their families.
Efficient Financial Services (Pty) Ltd, trading as Efficient Wealth, is an authorised financial services provider, FSP 655
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