SA Needs To Fix The Economy

It does not need a doctor of Economics to advise that South Africa's economy needs attention as it is too visible for even a layman can comment and recommend solutions. Factor number 1 that has affected SA's economy is the electricity crisis that has exhibited a more visible harm to business than anything else. The electricity crisis has inhibited the construction industry in a big way as substitution of  electricity with generators is expensive and it has led to massive job cuts leading to an increase to unemployment figures. Other industries that heavily depend on electricity have also been hit hard especially the technology sector and security sector. Factor number 2 that has made an impact on the SA economy was the printing of new money even though authorities have argued that it is in sync with international standards it is clear that putting or printing new notes spirals inflation. The Rand is slowly losing value against the Greenback which definitely does not look good for SA economy at one time around March this year the Rand was at around R18... against the dollar compared to now at around R19... against the dollar. The surge in fuel prices is a graphic display of a symptomatic recession dilemma that the SA economy is slithering into. Although these factors cannot be hid or swept under the carpet the most recent diplomatic brawl with the United States was an unwise path to linger in as the ministry of International relations had to do a lot of fire fighting to tread on the sublime fiasco that hovered in the centre of SA's economy. Inspite, of these catastrophic factors which overshadow its economy SA's financial wisemen and women need to step in and advise the powers that be to put a stop to these loop holes to avoid recession.