A failure on government’s part to exhibit any sense of urgency to make hard decisions regarding South Africa’s recovery process will exacerbate the country’s current economic challenges. A lack of economic growth over close to a decade – particularly compared to South Africa’s emerging market peers – has meant that the country’s income has not been able to accommodate either population growth or spending patterns.
South Africa is in urgent need of implementing the economic reform policies it has promised to do, but failed to deliver on, to turn the South African economy around. These were the words of warning by Dr Thabi Leoka, founder of economic consulting and advisory company Naha Investments, at the recently held Allan Gray Investment Summit, who painted a grim picture of the state of the SA economy.
South Africa is the country that never stops surprising. Often, they are surprises we would rather not have, and sometimes we wish we were not naïve enough to be shocked. The list is long, but recent additions include yet more corruption scandals and more news of government mismanagement and of course the devastating looting and unrest that rocked KwaZulu-Natal and parts of Gauteng in July.
The success of an economy can be measured against a simple mantra: Everyone who wants a job, has a job. This is the view of Kevin Lings, chief economist at STANLIB, who spoke on Thursday at the 2021 Allan Gray Investment Summit. The virtual event brought together local and international investment managers and other finance...
The South African economy grew by a better than expected 1.2% in the second quarter, having now grown for four consecutive quarters. The pace of growth in fact accelerated from 1.0% in the first quarter, which was revised lower from 1.1%. Although the economy is 19.3% larger than a year ago, having rebounded off a depressed base, overall economic activity is now only back to 2017 levels.
It has been predicted that the nationwide riots and looting that took place in July are likely to cost the country close to R50 billion in lost output. While the exact scale of the loss of earnings, job losses and damage to infrastructure is yet to be quantified, the rand’s drop by as much as 2% against the dollar in the wake of the destruction may leave potential investors second guessing their investment strategies.
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za