South Africa stands to be one of the most developed countries on the African continent. How the mighty have fallen. We might have a clue to that. Should we expect a rise? Well, some might say it’s up to coronavirus. For how long will the virus continue to stay? This is the question on every person’s mind in the world. Every country’s economy has been uniquely affected by this menace. It has now seized from being a medical problem. It is affecting every aspect of life. Politically, socially, and even economically.
South Africa’s economy was already experiencing a recession even before coronavirus. In fact, the world bank gave a 0.8% growth projection of the country in October 2019. The country has since taken some measures to combat the situation. To evade an impending recession on its economy, strategies were put in place to foster growth and competitiveness.
Coronavirus pandemic and lockdown crisis on the economy
The disease has rendered any efforts put forward by the South African government futile. A serious lockdown has a result taken a toll in the country. This means the country’s imports and exports have been greatly affected. The tourism sector is also in turmoil as no one is entering or leaving the country.
Businesses and companies have also followed suit. Meaning the country’s employees are not at all contributing to boost the surging economy. This has lowered the confidence index. April recorded the lowest confidence since the South African chamber of commerce and industry started compiling this data in 1985.
The way forward for South Africa economy
South Africa is better off. For a fact, the country still stands a giant in the African economy. Foremost, there has to be a change from the exports to foreign investments. The country has a great dependence on oil exportation. In fact, oil records the highest exports in the country.
The tactics are already laid out by the economic paper that was published to promote economic competitiveness and growth. By seeking opportunities, South Africa has the potential of luring a lucrative investment opportunity. ZAR prognoses come in handy.
Experience is with no doubt the best teacher. Following South Africa’s past failures, for example, the Eskom power plant crisis. The country can invest to boost the skills and experience of its manpower. Great management skills will steer the country’s economy towards growth.
The crux of its economy will come in when the lockdown subsides. Tourism will bring in revenue. Exports and imports will be up and running again. Companies will reopen and employees back to work. It is an unavoidable boom.
Summary
This time would be a great opportunity for the country to repair its wounds. And plan for the future after coronavirus. It could even come to a surprise to the world bank as the economic predictions of the country may take a turn to a positive impact. Remember, the only way to get through this difficult era is working a way to get through it.
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