With a small economy such as ours, regulations and policies that make it more difficult for skilled foreign workers and businesses to invest time and capital here, represent a serious risk to future economic growth.
Die Instituut vir Rasseverhoudings sê Suid-Afrikaners het net meer as 'n maand oor om 'n beroep op parlementslede te doen vir die verwerping van die Wetsontwerp op Onteiening.
The latest Macro Review, a report published by the Centre For Risk Analysis (CRA), details the current state of South Africa’s municipalities. It finds that most of South Africa’s municipalities are in serious financial trouble. They also lack the capacity to adequately deliver services, feeding into increased protest action, and negatively impacting investment and economic growth.
The ANC may begrudgingly take on reforms but these will be cosmetic at best and will not change the fundamental relationship between party and state
Indien die ekonomiese en basiese dienslewering daarmee saam gaan verbeter, sal die ANC op nasionale en plaaslike vlak die trekpas gegee moet word.
This inevitably means that, when a party such as the ANC is in charge of state organs and tools, the default will be toward policies that increase centralisation, taxation, and power maximisation – all of which have wrought havoc on the economy, with a record-high unemployment rate and lower foreign direct investment flows as the prime examples.
This means the country's fiscus will be more fragile in future.
South African think tank, the Centre for Risk Analysis (CRA) hosted a discussion this week about the viability of the government’s National Health Insurance scheme, which it says is moving full steam ahead, despite concerns raised by stakeholders in the private and public healthcare space.
Basic Income Grant (BIG) – added to the increasing number of other forms of welfare – represents a major risk to South Africa’s fiscal responsibility and growth prospects.
Simply discussing the possibility of nationalisation sends a signal to SA and international companies and investors that the institution may lose all credibility
In the context of rising food and fuel prices, an official unemployment rate of 34%, and growth-depressing factors such as blockades of the N3 and persistent rolling blackouts, South Africa faces the prospect of more social unrest and instability over coming months.
Inflation is likely to remain high given that there is little prospect that substantive structural reforms in both the policy and administered price areas will be implemented any time soon (“SA consumers at ‘tipping point’ as food inflation soars, says NielsenIQ”, July 27).
How can businesses assist in South Africa’s economic recovery when a growing number of the country’s municipalities are unable to perform their most basic functions?
There may be overtures to accountability and structural reforms, but for as long as the ANC adheres to the requirements and edicts of the NDR the incentives and pressures for corruption will persist.
Within the context of a tightening global business environment, foreign investment in countries such as South Africa may decline, or head towards more friendly climates. Higher interest rates also mean tighter credit, and so businesses that want to expand may be faced with higher risk and credit costs.
Monopolising the management of healthcare — even if it is done only incrementally over a long period — will add yet more layers of bureaucracy and control over doctors and nurses, and concentrate resources in the hands of the state. In so doing it will add incentives for cronyism and corruption.
Considering the consistently below-average performance of the country’s ports, it comes as no surprise that the Port of Maputo is emerging as an alternative to its nearest South African competitors, a point confirmed by Chris Hattingh, senior policy analyst at the Centre for Risk Analysis.
The Centre for Risk Analysis says conditions at local ports are costing Transnet and the economy billions, due to years of neglect.
Despite South Africa’s continuous improvement in its Human Development Index value for nearly three decades, the country’s overall rank has been declining over the past three years.
South Africa’s recent attempts at structural reform tinker at the margins and do little to resolve barriers to investment and employment, especially regarding labour markets.
The latest Macro Review – Siege Economy: SA Trade – published by the Centre For Risk Analysis, looks at the latest trends regarding South Africa’s trade with the world. Also featured is an analysis of key policy risks facing businesses and the consequences of such risks, which are most likely to be felt by low- to middle-income consumers.
South Africa’s port facilities have been ranked near the bottom of the 2021 Container Port Performance Index (CPPI), released by the World Bank and S&P Global Market Intelligence.
Eskom CEO André de Ruyter has said South Africa has no choice but to shift from coal to renewable energy as it is becoming impossible to secure funding for new coal projects.
Government last year lifted the cap on private power generation from 1MW to 100MW, below which companies don’t need to be licensed by energy regulator Nersa. Now Eskom CEO André de Ruyter has questioned why there’s a cap at all.
13 May 2022 - SA is increasingly becoming an economy driven by the tertiary sector, but pupils’ poor performance in critical subjects is hindering them from entering the job market.
13 May 2022 - CRA senior economic analyst Bheki Mahlobo said the ANC administration under President Cyril Ramaphosa continued to perform poorly.
Effective and reliable service delivery remains one of the biggest challenges in South Africa. Municipalities across the country are in crisis with broken infrastructure. The Centre for Risk Analysis launched the 2022 edition of the Socio-Economic Survey of South Africa. David Ansara, the Chief Operating Officer of the Centre For Risk Analysis, discussed this with eNCA's Masego Rahlaga.
12 May 2022 - The unemployment rate has led many South Africans to rely on social grants, says senior analyst at the Centre for Risk Analysis (CRA) Bheki Mahlobo.
In late February, economist and senior analyst at the Centre for Risk Analysis Bheki Mahlobo highlighted three vulnerable sectors subject to change, including fuel, food and energy.
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