Give Credit Where It Is Due

The ANC can sometimes be brilliant and sometimes just plain dumb. The new Madiba bank notes are another brilliant idea by the ANC! I know there are some of you that will not agree. For you I have to ask whether your disagreement is based on emotions.

If you acted on emotions, let me explain the logic behind the new Madiba notes. Did you know that a Mandela R5 coin is worth R22 000? Did you know that one such a coin sold for more than a million rand? Did you know that Mandela is as famous as Coca Cola? If you did not know any of these you have not been reading and therefore would be emotional.

Here are some advantages of the new Madiba bank notes. Firstly, rare bank notes and coins are worth a lot of money. This means that the old South African bank notes will become rare and will be worth a lot of money in years from now. So if you are clever you would save your old notes and sell it in years from now.

Secondly, Mandela is a global icon and therefore many people all over the world would like to have some Madiba notes and this will strengthen the South African rand. Thirdly, a stronger rand would give greater resistance to international economic shocks.

However, there is a negative and that is when the rand strengthens the exports are suffering as a weaker rand is good for exports. The bottom line is the advantages are more than the disadvantages. So I think the new Madiba notes are an excellent economic idea.

On the other hand, it is poor idea for commemorating the ANCs centenary because Madiba was not the only person that contributed to the struggle for a politically free South Africa. It is therefore unfair to put him alone on the South African bank notes.

Nevertheless, keep in mind that when it comes to economics and business we cannot become sentimental as it would not give us the edge over our competitors. So based on this the Madiba notes is a brilliant idea.

11 February 2012