Radical reformation: What SA can learn from the east
Ramaphoria has been pleasant after the past decade of doom and gloom, but SA’s economy will need a structural overhaul if low growth, poverty and unemployment are to be addressed
In what seems a world away from the slowly deindustrialising SA, emerging markets are giving the US and EU a run for their money. Since the global financial crisis, SA headlines have been full of doom and gloom — depressingly low growth, high unemployment of more than 25% and a credit ratings downgrades. December 2017 was thought to be a turning point, and as Cyril Ramaphosa took the helm as president there flashed a glimmer of hope. But halfway through the year, unemployment remains high and economic growth fell more than expected in the first quarter, by 2.2%. The first set of data released in the second quarter hasn’t painted a rosier picture either. This month SA got a rude awakening from Fitch. While the ratings agency maintained SA’s sovereign rating at junk status with a stable outlook, the underlying message was clear — Ramaphoria isn’t enough to change the country’s fortunes. "Current government initiatives are unlikely to improve trend growth significantly, as their implem...
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