Rainbow has turned grey
THE colour has been drained from what was once the Rainbow Nation.
Last week, in the midst of what is now never-ending electricity black-outs, our country was greylisted by the Financial Action Task Force (FATF).
The FATF was established in 1989 by the G7 countries to combat money laundering and, subsequently, terrorism.
Being on the greylist is not good. It means that international businesses and financial institutions will be a lot more careful if and when they opt to do business with us.
Shortly after the announcement, the rand weakened. Motorists will feel the impact of the weaker currency at the pumps.
This week the price of petrol rose by R1.27 a litre and diesel by 30 cents a litre. But the pain is not yet over.
When the petrol price for March was calculated, the rand was trading at around R17.50 to the dollar. This week, the South African currency was almost R1 weaker, trading at just below R18.50 to the dollar. If things continue as they are, the petrol price is likely to rise again in April.
We know from our lived experience that whenever the cost of fuel goes up, so does inflation and that makes everything more expensive.
Now that we are on the FATF greylist, it will cost more to borrow money from international lenders. It is a worry given that we are a country that lives on borrowed cash.
Last week Enoch Godongwana, our finance minister, announced that we intend spending R2.1 trillion in the coming financial year. But, since we are only collecting about R1.8 trillion in taxes, we will have to borrow the rest.
Right now, we owe about R4.3 trillion in loans. In two years that figure will mushroom to almost R6 trillion.
The problem that we face is that we are simply not able to grow our economy. As a result, people are struggling to find work.
The latest unemployment figures (for the last quarter of 2022) show that more than 40% of those who could work can’t find jobs. Young people (those aged between 15 and 34) are most affected.
With crumbling infrastructure and a breakdown in law and order, many who sacrificed so much for our freedom have been left feeling disillusioned. It includes Rafiq Rohan, a former journalist, who died this week.
The reality is that many of our problems are beyond our control. But what we can control is who we vote into power. It is therefore important that those who can vote, register with the Electoral Commission of South Africa.
They are currently running a national campaign that is themed “Your Vote Is Your Voice”, ahead of the 2024 national elections.
It is clear now, 30 years into our democracy, that a rainbow needs many more colours than simply black, green and gold.