South Africa rising sun for global future

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South Africa’s history is one of a kind, It came into picture from colonial conquest by the Dutch, who were on their voyage for exploration of new regions to increase their trade dominance in the world, South Africa have gone through extreme apartheid oppression and recently exploring democratic transformation through, economic struggles, Political transitions and ongoing efforts towards a brighter future going ahead.

?It has its beginnings in European colonialism which has started to explode in and around 1652 when the Dutch East India Company founded a post at the Cape of Good Hope. Racial discrimination was intensified by early 19th century British control. In 1948 the National Party institutionalized apartheid through Population Act of Registration and urban relocations. Under which every native south african have to mandatorily get registered with the Britishers to be among the citizens of their own country. They have been ousted from their own land through this act and made to live in deserted regions where agricultural productivity was very low.

Resistance appeared through the African National Congress (ANC) (Nelson Mandela, Oliver Tambo, Walter Sisulu) leading the way. After a long fought war of more than 5 Decades, which include both violent and non-violent methods, Internal protests, International Sanctions, and with the zeal of crores of Native Africans, they were able to come out of that apartheid Era. After 1990 the release of Nelson Mandela, it was a new democratic era for South African people.

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From 1994 onwards, the political developments have started taking place.

In 1994 the democratic transition brought about a government committed to national unity, reconciliation and social justice. It was a government led by Nelson Mandela (1994-1999), Who does not believe in taking revenge from those who had ruled over them for centuries i.e. European his government promoted, national unity, social welfare, and constitutional reforms. Yet adherence to economic constraints, as much as high expectations, tested his leadership. As he had a dream of providing equal kind of employment opportunities to both natives as well as Europeans to make the economy more just and reduce the divide between rich and poor, which is the major reason for resentment among the native peoples.

????????????? Thabo Mbeki (1999-2008): Under his presidency, South Africa has started to achieve sustained economic growth. Black Economic Empowerment (BEE) It was a policy to make the black population in South Africa more empowered and wealthy, which can reduce the rich-poor divide among the Europeans and South Africans in the country. But his leniency with Zimbabwe’s Robert Mugabe, a long-time friend of Thabo Mbeki and an Autocrat who has been facing heavy corruption charges, led to the downfall of Thabo as Zimbabwe, being a neighboring country, was also impacting the politics in South Africa.

????????????? Jacob Zuma (2009-2018): He was forced to resign after much corruption and ‘state capture’ at the hands of the Gupta family. In fact, investor confidence has been weakened by economic instability and, in some case, policy mismanagement. Their was a saying which has been became very popular with Jacob Zuma that is “He look after himself first, then his family, then his cronies, Then the ANC and finally the country”.

????????????? Cyril Ramaphosa (2018-present): Ramaphosa promised to tackle corruption through anti-corruption reforms and State capture Investigations, he has made sure that the corrupt works of Jacob Zuma must be dealt with properly under the purview of law and also get the economy moving with targeted reforms. He has also taken care of South Africa during the pandemic crisis and have not let it slip under the hole of long-term recession, which has a fair chance of taking over the country.

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Economic Landscape

South Africa’s economy has been dominated by its rich mineral resources and industrial potential. Due to the Demographic dividend a large number of manufacturing companies also allude towards South Africa thinking about getting cheap labor in a resource-rich country which also posses industrialist friendly policies and is also a part of all the major unions in the world.

There are several economic policies and reforms taken by South African government such as

Growth, Employment, and Redistribution (GEAR): With a view to macroeconomic stability, fiscal discipline and privatization.

New Growth Path (2010): Created to focus on creating jobs through labor-intensive sectors.

National Development Plan (NDP): Structural reforms targeted at reducing unemployment and inequality by 2030.

Sectoral Overview: Mining, Infrastructure, and Agriculture are the areas that have strong foundations in South Africa and will create ample amount of employment opportunities as South Africa grows into a more stable economy.

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Major reforms needed to make South Africa a Beacon of light for the whole African Continent as well as the greater good of the World Economy:

Education: South Africa has an underfunded, inadequate infrastructure and poor student performance with its education system ranked poorly.

Inequality: Racial and economic disparities continue to make the Gini coefficient (0.60) one of the highest globally.

Crime: The best the community can do to keep their homes safe is by stabilizing the community against the high rates of violent crime, which includes murder and sexual violence.

Unemployment: Job creation is a major concern in the face of over 50% youth unemployment. That’s compounded by rigid labor laws such as very high severance and frequent strikes.

Governance and Corruption, mismanagement, and state capture scandals with successive administrations have led to creating a bad environment in South Africa for global companies to invest in. Often, the diversion of public funds has slowed development. Transparency and accountability have always been questionable in South Africa and thus required institutional reforms, followed by thorough judicial inquiries on all the leaders facing corruption charges.

COVID-19 Impact and Recovery

South Africa’s socio-economic challenges worsened as a result of the COVID-19 pandemic. GDP plunged sharply and unemployment rose far above 30%. Ramaphosa’s Economic Reconstruction and Recovery Plan focuses on the economy, resolving the energy crisis, and helping vulnerable sectors such as tourism to recover as these are the major pillars on which South African economy Sustains.

Future Prospects

A better run South Africa with sound economic policies and reduced inequality is essential for the global good, Government needs to invest more intensively in Infrastructure, education and anti corruption for a more sustainable development of South Africa

Conclusion

Despite historical and structural challenges, South Africa possesses significant economic and social potential. With strong leadership, resilient institutions, and continued reforms, the country can build a more inclusive and prosperous future that will be capable enough to drive the global economy at a faster pace going into the future.

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