Business11.12.2015

Some good news for tech prices, despite the weak rand

By Staff Writer

The rand hit is weakest levels in history after President Jacob Zuma announced the removal of finance minister Nhlanhla Nene.

Most of South Africa’s technology products are imported, which means that consumers can expect higher prices in future. However, there is some good news.

Esquire CEO Mahomed Cassim said most of the retail and reseller channels have already stocked up for the festive season.

This means there will not be an immediate implementation of drastic price changes in the short-term.

This will change over the next weeks and months, as products are replaced and restocked.

“These product prices will be affected by the new exchange rate, and this in turn has a ripple effect throughout the channel to the consumer,” said Cassim.

Rand volatility is a big challenge

Cassim said the ROE (rate of exchange) is a challenge, and it has become part of the foundation of their business.

“It is important to have a good internal team that understands the implications of the ROE, and plans accordingly.”

He said it would help a great deal to have a stable currency.

Strong sales expected to continue

Despite the volatile rand exchange rate and the looming technology price increases, the Esquire CEO remains upbeat about sales.

“Fortunately for us and the IT industry, the rate of exchange doesn’t only affect us but every import company across all aspects of commercial industries.”

“There will be a medium-term impact on prices, but we don’t believe this will affect the medium to long-term sales as consumers still need the products.”

“We must remain pragmatic and focused on sales and additional services to our clients and not the ROE. This, we believe, will keep our clients loyal.”