ISAAH MHLANGA: It will be even harder for SA to attract investment
After the war the West is likely to concentrate on funding Ukraine and rebuilding it
When the sixth SA administration came into office in 2019 economic growth was stagnant at 0.1% and had averaged just 1.4% a year over the previous decade. Growth in the primary sector averaged 0.6% a year and 0.1% in the secondary sector. The services sector remained resilient at an average of 1.8%.
Economist Ricardo Hausmann and his co-authors attribute this stagnation to three factors: an external story, which includes the end of the commodity price boom; a macro story involving unsuccessful fiscal consolidation efforts after the global financial crisis and tightening monetary policy; and a microeconomic story involving tightening product and labour market regulations, mismanagement of state-owned companies (SOCs), the introduction of the new mining charter, and debates about expropriation of land without compensation...