World Economic Forum …so what do we do?

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The recent World Economic Forum on Africa held in Cape Town has an important place for all countries on the continent. It aims to synergise the efforts of Africans to improve their economies.

So how do we as South Africans benefit from this illustrious event? It becomes an opportunity for us to reflect on ourselves and ask questions pointing to getting our own house back in order.
Just like the approach to a financial plan, we need to ask the questions:
Where are we now?
To get our own house back in order we need to recognise that we are lagging behind in terms of economic fundamentals. South Africa is lagging as an economic leader in Africa especially as the region has been growing around 2-3% faster than the rest of the world.
Reserve Bank’s leading business economic indicator for March was 1,6% after a drop in February of 2.3%.
The reserve bank has also hinted that the interest rate is likely to move upward within the next few meetings.
The rand has weakened to R12,58 to the dollar.
The economy has shrunk in the last quarter to a GDP of 1,3% quarter on quarter from a previous quarter of 4,1%.
Unemployment has risen to 26,4%. The worst in 12 years.
We don’t have enough electricity to keep up and…and… and…
Where do we want to be?
We need real sustainable growth to bring us back to an economic powerhouse in Africa.
How do we get there?
A solution could be found in infrastructural development which is hindering growth. Building schools, houses and hospitals (just the essentials) create employment which in turn uplifts the quality of life of the people and improves the standard of the country. South Africa is far better off than other countries in Africa but we should keep focusing on improving and maintaining what we have to keep ahead. This will keep many of our people employed and put us back on the path to economic growth.
Easier said than done, I guess. But then in difficult times great vision and leadership is needed more than ever to pull through.

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