South Africa Downgraded to Junk - What a Difference 12 Years Makes in the Life of the South African Economy - Mbi Mbapeh

#SouthAfricaDowngraded - What a Difference 12 Years Makes

Who would have said in 2008 that the #sovereignrating of South Africa would be downgrade to junk status in 2020. Just 12 years later. South Africa survived the 2008 global financial crisis in a solid position because of its robust #economicgrowth and a #budgetsurplus. What happened to this economy that was growing steadily with a budget surplus?

Irrespective of your feelings either about the ratings agencies or the present perception about the #SAeconomy, the road ahead will be onerous. As we map out our way out of this quagmire the lessons should not be lost on us especially under the prevailing environment. Off course we can only connect the dots going backwards. A few of those dots come to mind;

1. Visionary #Leadership matters

2. No economy is too big to fail if in the hands of #unscrupulousleaders

3. Party can never be bigger than country

4. We share a #commondestiny rich or poor, black, white, Indian, green or Purple

5. All plans should carry a #commongood' agenda especially for the most vulnerable of our population.

6. The cancer of #corruption take no time to deal with its host if no culprits are brought to book.

7. Skills and work #ethics cannot be down played.

8. The transformation of an #industrialeconomy to a #digitaleconomy as the world changes bearing in mind that it has to be a hybrid of both systems is fundamental.

9. Over #taxation burdening a very small part of the population start creating apathy and a shrinking tax base.

10. Spiralling uncontrollable debt projected to be about 90% by 2023.

11. Reliance on #SocialGrants has moved from about 9 million in 2008 to Over 17 million people and projected to be well over 20 million by 2021.

12. The #strikeculture #strikeeconomy of the economy is an impediment for #investmentattraction.

13. SME and #entrepreneurship as a laver of economic development done right matters.

This list can be expanded even more but dealing with a 'wicked problem' requires a pragmatic approach to some of the simple challenges that confront us. All the points above could be transformed to critical questions. Drilling down these questions may just get us to start thinking differently. In my next article i will drill into the above points briefly and pose some questions related to our next moves.

My views... Mbi Mbapeh