Averting the apocalypse

There’s something more than a little apocalyptic about the state of play in SA of late. The Mother City lurches from drought to drenched at the hands of the 100-year storm, while a few hours up the garden route tragedy is playing out as Knysna and Plettenberg Bay are consumed by raging fires.

A casting director searching for four horsemen to lead the charge wouldn’t have to look much further than Saxonwold and Pretoria, as long as suitably robust steeds could be sourced to support the considerable burden involved.

Now Statistics SA has added to the gloom by issuing GDP numbers that have surprised the market on the downside and officially confirmed that we’ve slid into recession. First-quarter GDP dropped by 0.7%, following a 0.3% drop in the fourth quarter of 2016. This backs up anecdotal evidence of an economy in dire straits.

The consumer’s cupboard is bare, investment has dried up and the ratings agencies are sniffing around with both eyebrows raised. Policy decisions made in the months to come will be enormously important.

It will be key for government to realise that business is the only engine that is going to get us out of this fine mess, and to treat it as an ally rather than an enemy — no matter how tempting it may be to roll out nonsense about white monopoly capital operating with an agenda known only to Bell Pottinger. Making some attempt to clean up the Augean stables of the parastatals would help, as would a clear commitment to steer clear of any truly bonkers deals with Uncle Vladimir and his chums. x