SA Economy On The Mend

Analysis

South African market forces point to a mending economy due to several market indicators that have turned on a green light from an amber light that was flashing preparing to hit the red zone that signaled a plunge into recession. The dwindling of fuel prices which had soared is one of the quickest market indicators that signaled a stabilising economy which seemed to have slipped out of the State's control. Fuel especially petrol's price tag was slowly getting out of hand and affected the prices of daily necessities like bread. Petrol prices fell from around R22.30 to around R21.90 which is a good indication since it is quite unexpected to have a drop in fuel prices. Furthermore, another indicator that put Mzansi into the economic green zone is the availability of electricity which has powered the industrial zone which decried the loadshedding that was taking place even though, the expenditure has been passed on to the  consumers through the hiking of tarrifs. Although, the minister of electricity in the President's Office, Honourable Kgosientso Ramokgopa highlighted that electricity will improve he didn't mention that the cost of the resource will surge exponentially. However, SA's capacity to work with Mozambique to import electricity creates an economic zone in the SADC region which the country can fully utilise to improve on its economic independence from the West which is another economic factor. Due to a diplomatic fall out that erupted between South Africa and the US it had affected the strength of the Rand which had plunged into an all time low of 19 point plus against the Greenback. Despite, this The Rand has steadily gained to R18.444 as of today against The Greenback. Moreover, the recent extension of the Zimbabwe Exemption Permit deadline played a significant pivotal role as South Africa is benefiting from the revenue collected at the borders and labour provided in it's economy through industry production. Moreso, the much anticipated BRICS summit that has been topical gives SA an economic leverage to invest in other African countries and shove off economic threats from the West if they manage to come with a currency that challenges the Supremacy of The Greenback. Nonetheless, SA has to realise it's economic location and wake up from it's sleep to retool and start the SADC economic engine and shove off threats from the minority who are threatening to leave if their conditions are not met.