South Africa’s economic outlook

South Africa’s part took in the 6th National elections – the African National Congress (ANC) won majority in the parliamentary elections, once again. Now the focus has shifted to economic growth, the IMF (International Monetary Fund) forecasted to be 1.2% in 2019 and 1.5% in 2020 by the International Monetary Fund.

Yesterday Statistics South Africa released its quarterly unemployment numbers which indicated that the unemployment rate has increased in the first quarter of 2019 by 0.5% giving South Africa an unemployment rate of 27.6%.

Corruption in South Africa is also another major concern as this has been noted to affect public morale and distrust in politicians and lowering the voter turnout in the 8 May general elections. 

The government will have to work to restore faith in government organization and institution to get private sector buy-in. The high unemployment rate, corruption, and a negative economic outlook are some of the many issues the reelected government and President Cyril Ramaphosa will have to tackle.voters will be watching and how these problems are handled could determine future elections results.

President Ramaphosa before elections underwent a massive investment drive look to get $100 Billion to spark the economy again and create jobs, as well as a job summit which took place last year. Ramaphosa will need time to see if any of these initiatives help South African citizens.

 

By Mokgethi Mtezuka

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