Fin24

US paper sounds alarm over SA economy

2012-10-16 08:30

Johannesburg - The Wall Street Journal has published an article painting a bleak picture of South Africa's economy, saying labour unrest has caused its economic growth to fall behind other African states.

"The unrest is exposing a stark reality - South Africa is falling behind, even in Africa," read the Wall Street Journal article, published on its website on Friday.

The article said Rwanda, which had 800 000 people killed in the same year the ANC took power, had managed to achieve annual economic growth near 8% since 2004, more than double South Africa's 3.7% growth rate during the same period.

It said that when Zambia held its democratic elections in 1991, it scrapped nationalisation, but South Africa "is debating nationalisation and other ways to intervene in the mining sector".

Countrywide strikes coupled with unemployment and income disparity were posing a grave challenge to the ruling party, read the Wall Street Journal article.

Brazil's economy had grown around the same pace as South Africa's but its income disparity had diminished, it added.

 

Comments
  • stanley.marries - 2012-10-16 08:36

    And STILL,the masses will vote for the ANC...Ai...how ignorant can you be????

      michael.heys.3 - 2012-10-16 08:55

      Poor Tsotsibaby, he thinks stanley.marries is white because he is critical of the ANC. Anyone with a brain in their head can see that the ANC can't govern a country. Most of the bigwigs are corrupt, are robbing the taxpayer blind, can't run education, health, police or anything else very efficiently.

      daleinn - 2012-10-16 08:58

      The US and Europe will still do business with Africa.. the world is in a recession,as long as some order is restored. There is no sentiment, and the world appears to be more corporate..then anything else. Anyway who else has the b$lls besides Zille to stand as a future leader in this country? When factions have already seen heads fall in the KZN amongst ANC,IFP and NFP..

      tshepiso.sefara - 2012-10-16 09:06

      What would you prefer masses vote for. If ppl don't share same view I guess it makes them ignorant.

      harald.voney - 2012-10-16 09:18

      eish Tesepo... besides discriminatory laws (that still exsist today in differen forms), the old Nats did far better and built everything around you. Don't be naive or ignorant... check it out before commenting...

      mfrater - 2012-10-16 09:24

      The ANC is both directly and indirectly responsible for SA's economic problems right now. We all know this and not even the ANC followers can deny this. They too are unhappy. The problem is, their solution? 'Ah, we will wait until December and kick Zuma out just like he kicked Mbeki out'. Then what? Replace him with some other useless fart? For goodness sakes. ANC supports, we have been telling you for many years that the government you keep voting for is useless, they are NOT trying to help you, they are bleeding you dry faster than the Apartheid did! Unemployment is at a 40 year LOW right now! The ANC have no clue about how to run a country, and they never have! The ANC was a freedom fighter organisation, they knew how to do that and they did that well. But a 'government', they are not. You can keep kicking the leader off the chair and replacing him with another useless idiot from the same party, you will keep getting the same result (or worse as was the case when Zuma was forced in). The problem is the ANC! They need to go, we need a government that knows how to be just that, a 'government'. We do not care if they are white, black, indian, or any other race prominently, as long as they can RUN THE DAMN COUNTRY CORRECTLY! Do you ANC supports seriously not realise what is happening in SA and the direct impact this has on you? If things are left to continue as they are, SA will implode within 3-5 years and you will all be left to starve in a very barren land.

      jason.heineberg - 2012-10-16 09:29

      Lol that you think the masses read the wall street journal. Or that you think they can all even read at all. Sad reality is most these people will never even come to know this information. Some people just don't know any better, pre-ANC was poor quality of life, and nothing changed.

      jannie.beirowski - 2012-10-16 09:29

      @tshepiso.I agree the cANCer has done better than the old regime. The question however is 'better' for whom? For the children? with the education department falling apart? For the country? With our credit rating and economy being the worst it has ever been? For the ANC? With more labour unrest than ever before? For the leaders of the ANC? At last we have found something they have done better! The president will soon have a home of R230 million. There are more millionaires amongst the leaders of the nation than ever before! Congratulations, they have done better than the old regime, you stupid twit!

      cobus.eeden - 2012-10-16 10:47

      Please also see these figures in perspective. SA GDP = $7,157, Rwanda GDP = $562, Zambia GDP = $1,221 Lets compare GDP growth figures from last year: USA : 1.7% UK : 1.1% Australia : 1.8% Greece : (-6%) South Africa : 3.4% Wow, our rates are closer to USA and UK than they are to Rwanda. Is that really such a bad thing? If those growth rates remain the same Rwanda will still take 61 years before it will reach SA's GDP because it is growing from such a low base. I think that article is terribly sensationalist.

  • larry.piggott1 - 2012-10-16 08:38

    The only people who are not aware of this is our ANC Government. Anyone with the slightest intelligence must be worried that we are heading the same way as Zimbabwe.

  • christelle.james.7 - 2012-10-16 08:39

    And nobody will take note, or they will simply "rubbish" the report. The end is coming closer at a speed. Somebody needs to put those brakes on people

  • Don.Tandy - 2012-10-16 08:40

    Just a pity that the people who are screwing up the economy are the ANCorruption cadres who don't give a hoot, and the sheeplike minions who are too ignorant to know squat about economies beyond 'what are we eating today'.

  • EricksonTL - 2012-10-16 08:40

    FINALLY! The world is waking up, taking off the rainbow tinted specs, and seeing the truth about SA. Maybe, just maybe, this can be a catalyst for change.

  • Hannah Puissa Mostert - 2012-10-16 08:40

    It was only a matter of time under this government

  • martin.brasg - 2012-10-16 08:42

    C'mon trade unions of SA, wake up and smell the coffee. If the rest of the world won't buy our platinum, then what's the use of mining it?

  • andre.kuhn.583 - 2012-10-16 08:42

    But there is no need for Zuma to have a public TV discussion with Zille?! The ruling party is not bothered about the economy. A failing economy will only help the ANC stay in power for ever.

  • hector.barbossa.52 - 2012-10-16 08:42

    Carry on ... a lot of us are earning $'s

  • mark.schulz.796 - 2012-10-16 08:44

    I heard something when reading this article... a droning in the distance.. an 'aping' of Yeats bleeting from the political wilderness claiming that this is the all work of imperialists in Wall Street that have destroyed their own country, like Troy battling to protect their Helen of international capital, and now want to engage in neo-colonialism of the African mind... then I fell asleep. Was that you, Thabo?

  • wendy.craig.9655 - 2012-10-16 08:46

    The ANC will go down in history NOT as the organisation that liberated its people but as the one that reinforced the stereotype. Lazy, stupid and with an insatiable greed for Western status symbols.

  • nicolaas.geldenhuys - 2012-10-16 08:48

    So now we are falling behind, even in AFRICA!!! Thank you for taking us back to the stone age ANC!!!

  • Pulverturm - 2012-10-16 08:48

    Someone needs to start culling the fat pigs at the trough!

  • Sammy Willow - 2012-10-16 08:50

    unfortunately south africa will follow in zims footsteps, it has been on the cards for some time, the gap between the rich and poor is too big, corruption is rife, the uneducated masses are puppets for goverments to use at their will and of course you have malema, any where else in the world this man would of been in prison along time ago

  • hussein.diedericks - 2012-10-16 08:52

    USA news papers like spreading nonsense,our economy is safe,come along investors!!!!

      mfrater - 2012-10-16 09:11

      ...and you clearly have no grasp on what the economy is or how it works.

  • Vince.York - 2012-10-16 08:52

    ANC 'rigged internal structures' and cadre deployment aligned with unions that are not unions has destroyed SA via falsifying education, the legal system, business and everything else it has touched

  • emil.scharf.75 - 2012-10-16 08:53

    Well apart from a violent work force, AA and BEE is not condusive for economic growth.Instead of having focussed on training blacks and assist blacks to build their own corporate giants to compete on a level playing field, the ANC opted for the AA and BEE quick fix, resulting in service delivery problems, resulting in lower growth, resulting in expensive toll roads that should have been paid for with economic growth, resulting in higher food prices, resulting in a more violent work force.This country has created for itself a vicious cycle by rewarding incompetance....

      Peter - 2012-10-16 09:30

      And without doubt the masses will vote them in again. The real deal is that most blacks here outwardly pretend not to harbour prejudice towards whites and foreigners with knowledge and a desire to make this country better for all, but by their actions, they show that voting in totally corrupt and inept elite, is of more importance than the possibility of another party coming in and turning things around. Come 2014, if SA does not make a radical move away from ANC and its partner unions and their policies, we are in for a hell of a ride. Suffer the children for they know not what they do.

  • shaun.cousins1 - 2012-10-16 08:54

    Oh there has been growth....the government officials pockets

  • david.vanderwesthuizen - 2012-10-16 08:57

    You do not need to be white to know the Government has no idea what they are doing. Further more Eskom is bleeding this country dry and all the strikes is opening the wounds so we can bleed out quicker.

  • Gerald Jordaan - 2012-10-16 09:03

    Dumb sh*t ANC take note..investor and capital fight is a reality given your sh*t understanding of basic arithmetic not to mention a total lack of understanding economics !!

  • jan.human - 2012-10-16 09:05

    Too many hands in the cookie jar.... SA, go stand in the corner...Big brother must come and solve this mess...

  • Alice - 2012-10-16 09:06

    As if American economy is doing great, the country that has the most debt in the world. They keep on borrowing their dollar is saved by bonds. China is even starting to question this country bcoz it's not paying back it's incurred debts ( time will tell because they are also sitting on ticking time bomb) Zuma time has come, please do the rest of us a favour and step down.

  • steveroodt - 2012-10-16 09:08

    Merc's Ferrari's Underground Bunkers. Body Guards Pvt Jets. Parties.Wives. Designer Clothing.Money Laundering. Kick Backs .Sorry people We have a Corrupt economy Not a bad one

  • dylan.sciarappa - 2012-10-16 09:14

    What a joke! Perhaps the Wall Street journal should instead write articles about the big Wall Street banks buggering up the world economy

  • Eterni80 - 2012-10-16 09:15

    This will come as another 'surprise' to Gordhan.... JZ doesn't read the wall street journal, as it doesn't have any pictures of potential future ex missus zumas in it..

  • celtis.africana - 2012-10-16 09:19

    http://www.news24.com/MyNews24/Mission-Impossible-Think-not-20121003

  • thokozane.mahlangu1 - 2012-10-16 09:22

    Yes the ,the cANCer is turning out to be fatal for S.A. but we as people should do something ,no1 else is going to save us! Come on folk do something..

  • steve.ritchie.739 - 2012-10-16 09:24

    Anyone who invests in anything wants and expects a return on his/her investment. There are a lot of nervous foreign investors out there looking at this country with it's labour unrest and useless cANCer government. SA needs the foreign investment, like it or not. Lets not get to a situation where these investors pull the plug, because it would be foolish to think that the Yanks and other first world powers, don't understand African politics. They do and they are watching the goings-on very closely.

  • nick.athinodorou - 2012-10-16 09:27

    Why the surprise? if anything,most South Africans could have told the WSJ all of this. Heck,the chaps at the WSJ just need to read the local papers to understand it. The reality is that corruption, incompetance and a nationalist ideology are the most prevalent factors in SA today. These will not lead to economic freedom or prosperity,nor to improved social development. \r\nIn Africa,paradoxically,tribalism and communalism are paramount yet only if you belong to the correct tribe or community. The rest can be damned to hell. South Africa is no exception.

  • mmangaliso - 2012-10-16 09:30

    As long as we depend on mining which is ran by the USA UK EU. SA's growth rate will nt be above 4% with any political party at the helm.

      Peter - 2012-10-16 09:37

      Who do you think created the value for these minerals which necessitates them to be pulled out if the earth in the first place? Just like the constant scorn for 'imperialists and capitalists' - the same ones who come here and spend their tourism money. That big thing on your shoulder is a chip. Your a fool.

  • Daniel Mah - 2012-10-16 09:30

    who takes WSJ serious - considering the fact that they still maintain positive outlook on USA -

  • Essy1945 - 2012-10-16 09:35

    And who do we have to blame... the unions, that new political party - COSATU (conveniently sitting on both sides of the work force / political fence), and of course the ANC.... run it to the ground 'ey! that's a cool strategy for the country!

  • mpho.kgakwakandlovu - 2012-10-16 09:45

    Leadership change? Yes yes yes. Vote for another party? No no no. I will never subject myself to voluntary slavery. I rather stay stupid and free

      dewaldmontgomery - 2012-10-16 10:27

      You're ALREADY A SLAVE OF THE SYSTEM. It might just make a difference to actually vote for another party.

  • FUNKMASTERFLEX.AKA.BAIN - 2012-10-16 09:46

    Africans stand up,you are being represented by fools.Do you think that what happened in zim has proven anything good about Africa and what whites have been saying for years.Cant manage anything.Is this African culture.The people in zim have worst conditions and less freedom than under colonisation and you think we stupid when you blame whites .Wake up but suppose this is not right place to rant as Anc have their votes in the uneducated who cant comprehend what I have written

  • justin.pretorius - 2012-10-16 09:48

    Told you so. The regime is too busy looting than getting the country going

  • stephanie.sutherland41 - 2012-10-16 09:56

    Wow when Wall Street Jounal sounds the alarm, investors sit up and take note. Wake up South Africa because investments are going to get few and far between if things don't get better.

  • isabel.ashe.7 - 2012-10-16 10:21

    VOTE ANC.. AND THAT IS WHAT IS GOING TO HAPPEN. SA WILL GO DOWN DOWN DOWN..

  • heathway.master - 2012-10-16 10:25

    Maybe we are just following the old African Tradition. Take over a country and completely destroy it. This results in years of unemployment, hunger, violence, wars, complete absence of any policy of human rights, with the population reduced to nothing else but pitiful scavengers. Finally the African Government comes to realise its mistakes, and then starts from the very bottom, to re-build the ruins.

  • patrick.mbense - 2012-10-16 10:32

    ANC are stuffing this country up!!

  • Cjay Thango - 2012-10-17 12:47

    Clearly we are becoming an international topic because of these labour strikes!...instead of moving forward we are going backwards, we have un a state thats improperly managed (filled with thieves and crooks), Labour policies that do not promote the progress of the country, i think the ANC does not want to catch a wake up call regardles of the deteriorating state of our economy!...the rand is falling for all the wrong reason, our credit rating as a state was downgraded, FDI z looking to be running away! m sure Walmart z regreting coming into our shores!!!

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