MARK POZZO
After starting the week on the back foot, the rand continued to fall in early trade on Tuesday following the announcement by Stats SA that the country was in a technical recession.
The South African currency, which lost 1,5 percent against the dollar at the start of the week, fell below R15/$. The rand was still being battered by emerging market weakness.
Pressure on the Rand could get worse, as traders panic about a push for land reform that may have farreaching economic consequences. Like the economy the Springboks face a number of challenges, yet again this year. The SA rugby union released their financials with a reported net loss of R33 million in 2017.
Furthermore, the SA Rugby Group, which includes the governing body’s subsidiaries, suffered a net loss of R62 million. The SA Rugby Group promotes, develops and supports all levels of rugby in South Africa.
The reasons for the heavy loss were attributed to the failed 2023 Rugby World Cup bid, the costs involved in getting the Cheetahs and Southern Kings into the PRO14 and the loss of sponsorships.
The 2018 Rugby Championship began with the Springboks winning their opening game against the Puma’s ranked 10th on the world standings, and the rugby voices believed the resurgent Boks are back. They won their opening match in Durban against Argentina 34-21 and did not look any different to where Allistair Coetzee left off the previous year.
They were given the benefit of the doubt that they might improve as the tournament progresses. This was not to be as they suffered a humiliating defeat away in South America to lose the return leg 32 -19. The darkest days of SA rugby loomed up suddenly.
To make matters worse, on the Monday, the IRB (International Rugby Union) revealed the latest world rankings, with South Africa dropping to an all-time worst position on the world stage down to seventh position.
Scotland moving up a place to sixth, without playing and France just one below the Boks in eighth place. The Boks like the Rand currency, have all to do to survive. The Boks next mission is on Saturday in Brisbane, when they take on Australia, a team coming off a heavy hammering from the All Blacks.
Their world rating of fifth, does not reflect the way they are currently playing. They were up against the best team in the world, in fact the best All Black team in decades maybe.
They are certainly a team that you cannot take lightly and they will be doing everything to avoid defeat. Last year in the tournament both the home and away matches – can you believe it – were draws. The Boks away fixture ended 23-23, with the return fixture finishing 2727. Another for the record books.
Defeat at home to South Africa would not be acceptable for Australian rugby lovers, while the Boks need this win to convince their own supporters that they are on the right track under coach Rassie Erasmus.
While the Rand may need a life jacket to prevent it from a close call in avoiding a recession in the country with the estimated GDP growth at 1,2 percent, which will need to be seriously revised downwards in the weeks to come, tough times lie ahead for the SA economy, the Rand and the Springboks.
