We are now trading at R13.26 to the dollar which only looks to be getting worse. Growth is slow and the government is corrupt. In the past 18 months, South Africa has seen a capital outflow of R350 billion, even our housing is losing significant investment as seen by property 24 trends. https://www.property24.com/cape-town/camps-bay/property-trends/11014. Capital outflow is a sign of investor confidence as well as stability within South Africa's sphere.
In an interview with iol.co.za PSG Wealth regional director Amelia Morgenrood had this to say about the outflows;
"There was a survey conducted recently in which the JSE was ranked number one in terms of returns over the past 100 years,” Morgenrood said. “Simply put, it was the best-performing stock exchange on Earth."
"However, that has changed. What we have seen is that around R270bn has flown out of the JSE in the past 18 months. We have also seen average South Africans preferring to invest their capital outside the country in the region of around R80bn.”
Morgenrood cited the lack of economic leadership and the absence of proper economic policy as key reasons for the capital outflow.
“It’s difficult to understand why foreigners are leaving. South Africa has always been seen as a very entrepreneurial country with our chief executives on a par with much of the global players,” she said.
South Africa definitely has the potential for growth but poor economic policies and corrupt politicians (Zuptas anyone?) prevent the country from reaching its full potential. As a South African, with racial tensions increasing and more and more capital (human and monetary) leaving the country I have little faith in the next few years.
An example of the South African government's corruption is recently creating a case to reduce the number of provinces from 9 to 6. Anyone with half a brain can see this is done in order to manipulate voting and create majority voters within each area. This is also known as gerrymandering.
We as South Africans need to stand against racism and corrupt politicians, our beautiful country has so much to offer and so many unique individuals. Thanks for reading.