The real reason why South Africa is partnering with China
BusinessTech.co.za - Sep 1st 2015, 10:28
David Shapiro, director and deputy chair at Sasfin Securities, said that the reason South Africa is looking at China and the East as economic partners is because they tolerate our incompetence and corruption.
“The reason we go that way [East instead of West] is because they tolerate us. They tolerate our incompetence. They tolerate our corruption and our bad governance,” said Shapiro.
“You would never find Western Europe and the United States tolerating that [South Africa’s incompetence and corruption],” he said.
“That is why we are looking towards the East – we can get away with it.”
According to Shapiro, we are looking at the wrong countries as partners to boost the South African economy.
Last week it was announced that South Africa’s Gross Domestic Product (GDP) contracted 1.3% in the second quarter of 2015 over the previous quarter.
According to Elna Moolman, an economist at Macquarie Group, South Africa’s economic growth is now expected to be only 1.5% this year, and nothing better next year.
This slow growth, Shapiro said, can be disastrous for a country that sits with high unemployment, especially among young people.
The economist said that South Africa needs to show at least 5% growth to address the problems which the country is facing.
To achieve this growth will be challenging.
“South Africa is in a structural decline rather than a cyclical decline,” said Shapiro. “This raises the question whether we have the foundation and skills to make this country grow.”From 2015 Copyright, BusinessTech. All right reserved.
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