The South African Press Association (Sapa) says in one of its latest reports that South Africa will feel the pinch of an economic downturn as the effect of strikes and turmoil take affect. Economists like Investment Solutions are quoted as saying it will last at least two years.
“Unless we have sensible heads putting their hands up now, we’re going to see a [downward] spiral for the next few years,” said
Chris Hart, senior economist at Investment Solutions. According to him – and we cannot agree more – “hot-heads” in “cannon-fodder unions” are running the show (read ‘country’), which made wage negotiations more militant.
We already had a good show of what can happen at the Lonmin Mine. Now it is predicted more violent strikes in the mining and freight sector will really destabilise the country and weaken the rand. “There will be a big dive for the competitiveness of the industry and a withdrawal of investment. We are making less of what we produce,” says Hart.
And then we also have the upcoming ANC Congress. Every five years this leads to political uncertainty as the former revolutionary organisation battles to find it’s ways as ruling party. Political uncertainty leading up to this year’s ANC elective conference in December will most certainly play a detructive role.
If we don’t have strong political leaders to prevent strikes and improve labour relations, South Africa will not hit or come close to any of its growth rate goals. If the economy does not grow, jobs will not be created and people will be forced to venture into crime. And we already know why so many talented people are leaving SA… Just because of that.
President Jacob Zuma, or whoever will be taking over from him after next year’s election, will have their work cut out.
