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.
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.