Prominent economist, Mike Schussler, revealed a financial fact last night which is tremendously concerning.
He says: Foreign investors are losing interest in South Africa and are now rather taking their money elsewhere in Africa. Investments in Nigeria and Angola are increasing, while in South Africa, foreign money is slowly running dry. This, of course, also links to the fact that the USA listing South Africa under the 10 countries LEAST likely to support US policies and therefore not a good place to invest in.
Schussler’s findings are supported by the World Economics Forum and the IMF. The world has lost interest in South Africa. Ramaphosa and his predecessors destroyed too much of what was good in South Africa.
According to Schussler, direct foreign investment (FDI) in South Africa has dried up to a point where local companies are now more invested in international markets, than international markets are invested here.
Expressed as a percentage of GDP, at the end of 2017 the net FDI was -31% as a percentage of GDP – the negative value showing the balance of investment lies outside of South Africa.
In total, South Africa has invested R3.3 trillion in foreign markets, while foreign markets only have R1.8 trillion invested here, meaning there is a balance of R1.5 trillion invested elsewhere.
This is counter to almost every other emerging market economy, Schussler said.
The only way in which to address this would be to tackle corruption, closing down failing SOE’s such as SAA, lowering the cost of fuel, transport, water and electricity but above all, to cut back on the government’s payroll with at least ONE THIRD.
For the moment however, money is flowing out, little is coming in and what is left is looted, misappropriated, plundered and wasted.
Read the original article on Front Nasionaal SA
South Africa Today – South Africa News
