Chairman of SASI believes that economic climate will force people to save money
Elias Masilela, Chairman of the South African Savings Institute (SASI), believes that the current environment will condition consumers to save.
“It is understandable and perhaps even logical, that many commentators are questioning whether it makes sense to encourage savings under such dire circumstances. Indeed, this question was also asked last year, a time when economic agents were already under significant pressure. The answer last year was ‘yes’. And the answer this year remains ‘yes’. Despite the depressed economic climate, promoting savings remains a relevant and critical agenda.” Said Masilela at the launch of Saving’s Month today.
Promoting savings, even in the current climate remains critical and relevant to the recovery of the economy Masilela believes.
“Throughout Savings Month and beyond, we will continue to highlight that building a prosperous South Africa in the long term will require that savings are pursued even during seasons of economic downturn,”.
Positive signs of improved savings are already coming through with the first quarter of 2008 having seeing an increase in the gross saving to GDP ratio at 14.3%. This has risen to 17.1% in the first quarter of 2009.
Growth like this will encourage a culture of saving now and in future generations laying a firm foundation for growth in years to come. “Gone are the days of ‘I want it all and I want it now”, said Masilela, “Our tune now has to be ‘I don’t need it all and I don’t need it now.’ ”