South African Economic Reality

As South Africa transitions from the era of liberation politics to a phase characterized by issue-based and transformative politics, it becomes increasingly evident that our nation must reconsider its economic destination. For the past three decades, we have invested heavily in our political transformation, akin to raising a child—nurturing, educating, and preparing for a prosperous future. However, as we reflect on this journey, it is clear that our current path is not sustainable. The financial impact of our existing strategy on the economy is substantial, necessitating a fundamental shift in our approach.

I salute Build One South Africa for advocating for a National Convention that emphasizes non-racialism, constitutional integrity, and comprehensive reform. This call to re-evaluate where we are and where we are heading through a different set of eyes is both timely and necessary. By doing so, we can better understand the true state of our economy and the implications of our current strategies.

Current Economic Outflows to our Top 10 non African Trade Partners:
South Africa experiences a significant net loss due to various economic factors, including trade deficits, loan repayments, profit repatriation by foreign investors, and local financial wealth invested internationally. These outflows collectively amount to an alarming figure.

Total Net Loss in ZAR (Including All Factors) = Approximately R 462.981 billion annually, approximately 19.53%.

These figures paint a dire picture. If we visualize the South African economy as a basket of apples, with the total economy represented by 100 apples, we are removing nearly 20 apples each year. Over five years, this depletion would leave us with only a fraction of our initial economic capacity, reducing our economy to just over 2 apples out of the original 100.

This drastic reduction underscores the urgent need for a paradigm shift in our economic strategy. The current path is clearly unsustainable, and it is imperative that we consider a different destination.

Embracing a New Economic Strategy
To mitigate these losses and foster sustainable growth, we must focus on the following areas:

1. Promoting Local Consumption:
Encourage the use of locally produced goods and services to keep capital within the country.

2. Supporting Domestic Industries:
Invest in and support domestic industries, particularly in technology and manufacturing, to reduce dependency on imports.

3. Enhancing Skills Development:
Ensure that investments in education and skills development translate into domestic economic growth rather than outflows.

4. Encouraging Investment in Local Enterprises:
Provide incentives for local and foreign investors to invest in South African businesses, ensuring that profits are reinvested locally.

5. Strengthening Economic Policies:
Implement policies that promote economic stability and growth, focusing on reducing trade deficits and encouraging sustainable practices.

6. Adopting Ubuntu and Co-Ownership:
Moving away from financial policies that exacerbate socio-economic gaps, we should return to the African roots of Ubuntu. This philosophy emphasizes community, shared ownership, and mutual support. "I am because we are" should guide our strategies, fostering co-ownership and collaboration within communities to build a more inclusive and resilient economy.

By redirecting our focus towards these strategic areas, we can create a more resilient and self-sustaining economy. It is essential to move beyond the current trajectory and embrace a new economic destination that prioritizes the long-term well-being of our nation and its people. Only through collective effort and a renewed commitment to Ubuntu can we ensure that our economic policies benefit all South Africans and bridge the socio-economic divides that have persisted for too long.