South African business leaders on Wednesday (4th September) called upon President Cyril Ramaphosa to accelerate the process reform process to boost the economy and curb investment outflows. It is an indication that frustration is writ large on the businesses of arguably the most industrialized economy in Africa. Growth rate is deplorably low of the economy hovering around less than 1%. On the top of it, the rating agencies have given thumbs down to the beleaguered economy steeped in unemployment and a record dip in business confidence. The investors have taken out from the country R63 billion this year (for the last eight months).
The South African government wants to leverage the World Economic Forum’s Africa summit, which has kicked off yesterday to send positive vibes to the investors. The industrialists have different takes and prescription on how to salvage the economy and bring it on rail. A set of businessmen point out that a strong fiscal positioning can arrest the downward slope of the economy. They want strong arms to be applied to cleanse the system by sacking officials indulged in corruption and terminating the services of dead woods. South African economy has lost the steam with massive outflows of capital, which amounted to R63 billion as against R 20 billion last year. To enable South Africa to compete with other emerging economies, there should be strong attributes to vet the appetite of discerning investors, who have several other options to exercise for investments even in Africa. Stimulating growth and restoring the credibility of state institutions are an arduous task, given the country’s inglorious past, legacy of corruption and wrong doings inherited from Jacob Zuma, the immediate past president, who is facing corruption trials in the country.
If the actions of the present dispensation is not matched up with the promises made repeatedly about attracting an investment of US$ 100 billion in the foreseeable future, things, businessmen reiterate, will come to a naught. That is also known to the President Ramaphosa more than anyone else. It is also true that the President’s hands are tied since any pro- business posture will have a political backlash especially from the powerful trade unions. Indeed, the coming days will be crucial for South Africa as also for the President Ramaphosa, having regard to the fact that he got only the lowest vote share of 57% in the last General Elections.
