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Back to News When will we see good growth in SA again?
Kanaan Asset Managers, July 2014
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Kanaan Asset Managers

July 2014

When will we see good growth in SA again?

It will not help us to wait on the global economy.

Higher global economic growth and demand would benefit local exports although South Africa might have to wait longer for this. IMF MD Christine Lagarde warned recently that global growth could underperform for a while longer.

Last month the World Bank revised its economic growth to 2% from 2.7% over concerns similar to those of the IMF, including tight monetary policy.

We should not expect above average growth for South Africa, except if the government start to do certain things, which they can do and what they are supposed to do:

1. South Africa needs higher and inclusive private sector-led growth to foster job creation and reduce income inequality.

2. Reforms proposed in South Africa’s National Development Plan and critical reforms to product and labour markets, would help the private sector contribute to economic activity.

3. Promotion and protection of Investment Bill and the Expropriation Bill should be cancelled, to instil confidence in the future of property rights.

4. Prolonged and violent strikes should be “outlawed” to protect economic growth and those who wished to work.

Kanaan Asset Managers

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