Are we treating the symptoms rather than the cause of economic malaise?
Institutional reforms should supersede focus on investments because restoring legitimacy of public institutions is critical
SA has spent enormous time and resources on an infrastructure fund and investment conferences in an effort to boost economic growth. Despite these efforts there is limited evidence that markets have bought into these approaches, apart from the pledges made at the conference. SA’s fixed investment fell 1.4% year on year in 2018, according to data from Stats SA.
Regarding total investment as a percentage of GDP, SA is at about 17.9% — lower than the Sub-Saharan Africa average of 20.6% and well below the global average of 26.3%. A decade ago SA sat at 23.3%. Are we treating symptoms rather than the root cause of limited economic progress and sluggish investments? To revive the economy, restoring legitimacy in public institutions is critical...
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