By Jannie Rossouw, 1 July 2018
“The reality is that fuel hikes have a negative impact on most businesses because every tangible product which needs to be moved from point A to B needs to be transported and therefore, incurs these extra costs. Service providers will also need to take increased transport costs into account,” says Jannie Rossouw, Head: Sanlam Business Market.
Given that the
SME sector is estimated to represent almost 40% of business in South Africa and is also a key employer, the mounting financial pressure felt by business owners should be of concern to everyone. There are also certain industries that are more at risk. “Agriculture, infrastructure and construction, manufacturing and mining, travel and tourism, retail and wholesale trade, transportation and aviation will likely be most affected,” says Rossouw.
Having a clear view on business finances and implementing conservative measures can help protect business owners from rising fuel levies. Reducing all costs by 10% as a blanket approach is worth considering and Rossouw suggests the following additional tips: