Dear Warwick Clients and Partners

I hope this message finds you well and that you had a wonderful holiday season filled with joy, relaxation, and quality time with family and friends. As we embark on a new year, it is a perfect time to reflect on the opportunities ahead and prepare for the challenges that may come our way.

It is clear that 2025 promises to be both interesting and dynamic for both local and global financial markets. At Warwick Wealth, we remain steadfast in our commitment to keeping our clients informed and prepared, no matter the economic climate.

One of the key topics dominating discussions is the trajectory of interest rates, both in South Africa and internationally. While the expectation is that we will see further interest rate cuts, they may be fewer than initially anticipated. Inflation in many countries has stabilised, but in some cases, it has ticked upward, presenting challenges for central banks. This delicate balance will undoubtedly influence the pace and magnitude of monetary policy decisions across the globe.

Another development set to shape the economic landscape is Donald Trump’s return to the presidency of the United States. Historically, Trump has been favourable to stock markets, as he often measures his success by their performance. However, his policies, particularly his stance on tariffs, could have far-reaching implications. Should he impose significant new tariffs, we could see inflation remain elevated, which may, in turn, limit the scope for central banks such as the South African Reserve Bank, the Federal Reserve, and others to lower interest rates further. This interplay of policy and market reaction is something we are closely monitoring.

A significant factor shaping South Africa’s political and economic landscape in 2025 is the Government of National Unity (GNU), led by the African National Congress (ANC) and the Democratic Alliance (DA). This partnership presents a unique opportunity for the country, as it brings together the two largest political parties with the potential to foster stability, address key national issues, and drive meaningful economic reforms. However, the success of this GNU will depend on its ability to maintain cohesion and deliver tangible results.

Should the GNU falter or split, one possible scenario involves the ANC forming an alternative partnership with the Economic Freedom Fighters (EFF). Such a development could significantly impact South Africa’s policy direction and economic trajectory. The inclusion of the EFF in a governing coalition could introduce more radical economic policies, which would require careful analysis of their implications for investors and the broader economy.

This evolving political dynamic adds another layer of complexity to South Africa’s outlook for 2025. At Warwick Wealth, we are closely monitoring these developments to provide you with timely insights and strategies that align with the changing environment. Our commitment is to ensure that your wealth is managed with foresight and resilience, no matter the circumstances.

As we navigate 2025, rest assured that Warwick Wealth is well-positioned to respond to the challenges and opportunities that lie ahead. Our focus is on helping you achieve your financial goals while safeguarding your wealth through prudent and informed decision-making.

Here’s to a year of growth, resilience, and success.

Kind regards,
Marc Wiese

MD Warwick Wealth