Gloom

Finweek English Edition - - MONEY -

Even so, one can­not help but feel that South Africa is reach­ing an­other in­flec­tion point. As our coun­try is very young, each in­flec­tion point is sig­nif­i­cant and one gets the feel­ing that the scales are tip­ping to­wards an un­favourable fu­ture for SA at this time. Hav­ing said that, the gloom of­fers op­por­tu­nity for in­vestors who are able to cut through the noise and buy qual­ity in­vest­ments on the cheap.

BACK­GROUND

The in­creas­ingly vi­o­lent na­ture of the labour dis­putes over the last months and the po­lit­i­cal na­ture of th­ese events are deeply dis­turb­ing. As with the na­tion­al­i­sa­tion de­bate, it feels as though our Government is not con­cerned with the long-term eco­nomic im­pact of its ac­tions or in­ac­tion as the case may be. I have had numer­ous con­ver­sa­tions with se­nior ex­ec­u­tives at some ma­jor re­source com­pa­nies as well as some of SA’s largest farm­ers and all of them will be ac­tively re­duc­ing their re­liance on SA labour in the next few months. In ad­di­tion, the re­source com­pa­nies will be al­lo­cat­ing their cap­i­tal to other coun­tries. This means SA will lose jobs and cap­i­tal – both of which are in­dis­pens­able to our coun­try. The spend­ing of pub­lic funds by se­nior politi­cians for their per­sonal use and the widely doc­u­mented cor­rup­tion within Government are also not help­ful to our cause.

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