There is a proverb that success breeds success. The reverse is also true-failure breeds failure. That is the strange situation that Africa’s once upon a time most reliable and astute economy-South Africa-is caught up with. Now it is the turn of the of and one of the business organization in the country-South African Chamber of Commerce and Industry (SACCI)- to downgrade the business confidence in the country three notches below from 92 in July to 89 in August. This is the lowest level since April 1985, according to the chamber based on a survey undertaken on ts members and other stakeholders.
SACCI has 20,000 membership companies of various hues and sizes ranging from small, medium and large, spread across the country. Weak economic growth coupled with rising debt, unemployment rate at 29%, dip in exports and flight of capital continues unabated. The bad news is that the situation is plunging from bad to worse without any visible ray of hope. The situation also convoluted the law and order situation. The clash between the locals and the migrant population has led to social tensions. The captains of industry feel peeved by the lack of investments flowing into the country, despite the assurance of the political administration to vex it manifold. Some are suggesting that the country should approach IMF to seek assistance as the last resort.
South Africa experienced a wave of xenophobic attacks over the past three weeks, particularly in Johannesburg and Pretoria, where there are a large number of migrants as reported regularly in our portal www.trendsnafrica.com. The backlash of these developments also adversely affected the South African investments abroad, particularly in Nigeria, where a number of large South African corporations have invested. The retaliatory steps against attack on Nigerians in South Africa had led to closure of shops and offices of many South African corporations in Nigeria apprehending there would be damage to property and lives. At the diplomatic level also there are bickerings with each country justifying their stand and turf. Recently, South Africa had closed its mission in Nigeria. On the other hand, Nigeria had extended support to its citizens giving them free air lift, should they want to leave South Africa.
Analysts are puzzled if the two largest countries in the continent are t loggerheads, it may not augur well for the just-announced AfCATA and several other initiatives to create an ecosystem for free trade, lowering of tariff and free movement people within the continent
