The International Monetary Fund (IMF) has cut its growth outlook for the South African economy by almost 50% to just 0.7% for this year.
The IMF decision comes on the back of growing disappointment at the absence of any significant structural reform on the part of the South African government under the new leadership of Cyril Ramaphosa.
A number of business leaders and journalists had expected that the new administration under Ramaphosa would move swiftly towards policy reform, but this has not occurred.
Most emerging markets, developed economies, and African economies will this year grow at a multiple of the rate of the South African economy as threats to property rights, the costs of unproductive state-owned enterprises, corruption, costly labour laws, and the racial transformation policies forced upon investors by the South African government collectively undermine the competitiveness of the local economy.
Source: Daily Friend