The blame for the plummet in South African business confidence to its lowest level in nine months, after the riots and looting in July, must be placed on the shoulders of the failing and ineffective ANC government.
The FF Plus is of the opinion that law enforcement agencies’ apparent inability to subdue the riots and the denial that ANC infighting played a significant role in it all have had a detrimental effect on international trade relations, consequently, international investors are reviewing whether they should continue to do business in South Africa.
The party accompanied the parliamentary Portfolio Committee on Trade, Industry and Competition on its oversight visit to various businesses in KwaZulu-Natal and Gauteng.
While the damage to businesses caused by the looting, unrest and arson already cost the country more than R50 billion in turnover and jeopardised approximately 150 000 job opportunities, the recent events could also cause a drop of up to 1 percent in the country’s economic growth rate.
The fact that South Africa’s Gross Domestic Product (GDP) grew with less than 3 percent since 2011 adds to the prospect that it will probably take until 2023 for turnover to reach the same levels as before the Covid-19 pandemic and the restrictions, which delivered a severe blow to the economy.
Businesses must start ensuring their own safety and security, while local economies must be stimulated through localism so as to reduce dependence on large corporations for essential supplies.
Actively participating and independent communities will ultimately become sustainable communities with lower unemployment rates.
Read the original article in Afrikaans by Jaco Mulder on FF Plus
