South Africa heads for an economic crunch

South Africa heads for an economic crunch
Published: 07 September 2018 (261 Views)
South Africa is likely going face a recession starting from the last quarter of this year. The recession is mainly attributed to the malfunctioning of the agricultural sector, the mining sector, the telecommunications sector and the expropriation of land without compensation exercise.

The recession is most likely to affect the lower class as they are the ones that relatively get the least remuneration. The country is currently in a 2.4% deficit and the economy has so far shrunk by 0.6% which has since led to the influx of price hikes and the weakening of the Rand.

Economic expert Gerald Mwandiambira said that South Africans have to brace themselves for a financial crunch by cutting down on expenses as well as saving more. "Job losses and impulsive price hikes are most likely to be witnessed in South Africa during the Last quarter."

Already the country is sitting on a 26% unemployment percentage with more than 2 million youths unemployed. On the other hand President Cyril Ramaphosa received a combined investment amount of more than 24 billion dollars from Saudi Arabia and China but that money is yet to manifest itself on where it has really made significant impacts.

The recession has since been met by devastating outcomes as on Tuesday tuck-shop owners that comprise of the Pakistan, Chinese, Bangladeshis, and Somalians amongst other foreign tuck-shop owners got their merchandise looted in the Areas of Johannesburg South and Soweto.

Although the foreign nationals are viewing the incident as an act of xenophobia the resident of these areas that the reason why they conducted the looting operation was as a result of the bad merchandise that these foreign nationals sell and the fact that they don't have locals at their tuck-shops. However, minister of health Dr. Aaron Motsoaledi  said that of the 470 tuck-shops that were looted none of them tested positive in terms of selling food that was contaminated or substandard products. He also advised South Africans to desist from the operation since these foreign nationals are also trying to irk a living through these tuck-shops.

The minister of finance Nhlanhla Nene also advised South Africans not to panic but to keep their composure as their country faces the recession. Also complimenting the minister of finance's remarks was the minister of  public service and administration Ayanda Dlodlo who refuted the claims that government was going to retrench some workers.

However, the government has since started embarking on a cutback exercise which involves reducing the security personnel and incentives of some government officials.

- Daniel Itai

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Botswana President survives near-chopper crash

by Mandla Ndlovu | 22 July 2019 | 54 Views

Econet fires warning shot

by Mandla Ndlovu | 22 July 2019 | 63 Views

Panic as General Chiwenga is airlifted to China

by Mandla Ndlovu | 22 July 2019 | 98 Views

Botswana President survives near-plane crash

by Mandla Ndlovu | 22 July 2019 | 78 Views

The Gems deserve better than that Chipe... something

by Thomas Murisa | 22 July 2019 | 72 Views

The Avenues Clinic donates to Chipinge district hospital

by Staff reporter | 22 July 2019 | 66 Views

Should the Marriage Certificate incorporate an Expiry Date?

by Tondorindo | 22 July 2019 | 96 Views

Tsvangirai-Java's young brother guns for Glen View South seat

by Staff reporter | 22 July 2019 | 99 Views

Tshinga Dube refuses to vacate offices

by Staff reporter | 22 July 2019 | 113 Views

Mnangagwa's Youth league in sensational U-turn

by Staff reporter | 22 July 2019 | 135 Views

Mnangagwa escalates efforts to befriend USA, Europe

by Staff reporter | 22 July 2019 | 75 Views

DStv launches new 24-hr news channel

by Staff reporter | 22 July 2019 | 84 Views

Zimbabwe govt rules out nuclear power

by Staff reporter | 22 July 2019 | 82 Views

Convict Japajapa to apply for bail at High Court

by Staff reporter | 22 July 2019 | 70 Views

'Mnangagwa's secretary runs parallel government'

by Mandla Ndlovu | 22 July 2019 | 129 Views

New fuel prices announced

by Mandla Ndlovu | 22 July 2019 | 91 Views

Parliament of Zimbabwe exposed

by Nicholas Ncube | 22 July 2019 | 93 Views

WATCH: God appears live at Bushiri's church

by Mandla Ndlovu | 22 July 2019 | 122 Views

Unusual majors in US military academies

by Staff Writer | 22 July 2019 | 88 Views

High taxation threatens mining viability

by Dennis Shoko | 22 July 2019 | 65 Views

Talking Nkayi Development: 'No cry babies on their mothers' backs!'

by Nhlanhla Moses Ncube | 22 July 2019 | 62 Views

NPRC spells out Gukurahundi strategy

by Staff reportr | 22 July 2019 | 66 Views

ICT experts propose changes to Cyber Bill

by Stafff reporter | 22 July 2019 | 85 Views

'Rogue NGOs worry Mnangagwa's govt'

by Staff reporter | 22 July 2019 | 86 Views

'Masvingo solidly behind Mnangagwa'

by Staff reporter | 22 July 2019 | 75 Views

Manica strike late to denies Bosso maximum points

by Staff reporter | 22 July 2019 | 71 Views

Student loans re-introduced

by Staff reporter | 22 July 2019 | 76 Views

Corrupt passport officials warned

by Staff reporter | 22 July 2019 | 56 Views

'Beware of regime change agents'

by Staff reporter | 22 July 2019 | 63 Views

NRZ refurbishes 10 locomotives, 336 wagons

by Staff reporter | 22 July 2019 | 71 Views

'No fix to illegal forex trade'

by Staff reporter | 22 July 2019 | 80 Views

Zacc probes Lands Commission

by Staff reporter | 22 July 2019 | 74 Views