It is no secret that the South African markets have been in a state of flux. In his first State of the National Address last year, President Cyril Ramaphosa promised “a major push this year to encourage significant investment in the economy”. Pivotal to this push, foreign investment from firms and individual investors outside of our borders was necessary.
But, taking into account the dismal financial results reported by Moody’s in the first quarter of 2019, will Ramaphosa be able to make the necessary changes and reforms to help economic growth accelerate to as high as 3 percent by 2022?
According to the group, in a macro-analysis released at the beginning of June, the odds that South Africa may experience a technical recession are high. This, in a large part, can be contributed to the widespread power outages experienced so far in 2019 that have had substantial negative effects, particularly for the mining and manufacturing sectors.
The task of resuscitating South Africa’s economy is an onerous one, with the reality being that now is the time to dig deep as a country and harness all available resources.