Following the shocking news that General Motors will discontinue its operations in South Africa after 90 years, it is unsure which other business’ will be the next to leave South Africa’s declining economy.
Although GM did not give reasons for its withdrawal, it is generally accepted that it is because of the country’s economy downgraded to junk status and expectations of further downgrades.
South Africa’s labor legislation is also the most employer unfriendly in the world, with trade unions that enforce disruptions and strikes.
Probably, GM also wants to make use of the President Trump incentives for companies to invest in America.
FF Plus sees General Motors withdrawal as “one of the first significant consequences of the ANC’s economic war statement against South Africa.”
The party says it’s not surprising that the withdrawal of a company like GM from the country since it has been clear for a long time that large enterprises are extremely uncomfortable with the ANC’s rhetoric of radical economic transformation and statements on land expropriation.
Some of GM’s operations will be taken over by Isuzu, but the fate of GM’s agencies across the country is still unknown. It is also not clear how many people will lose their jobs, although negotiations on retrenchments have already begun with employees.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
