Tag: poverty

The realisation came when I least expected it. We had been out of South Africa for five years when we met my parents, siblings and their families for a family holiday. Our children by then had gained New York accents and were stylishly attired in their overpriced fashion items, whilst the nieces and nephews marauded through the hotel in their 'Naartjie' outfits that were more akin to pajamas than to fashion.

South Africa saw its most destructive riots in years this past July, ostensibly in response to former President Jacob Zuma's imprisonment and due to socio-economic factors. The Constitutional Court's sentencing of Zuma was widely hailed as a victory for the Rule of Law, but the commentariat in many cases remains blissfully unaware of its diagnostic blindspots.

After the shocking riots that engulfed South Africa last month, all of us in this beautiful country have cause for deep reflection, regardless of our race, religion, age or political views. Was this a singular event, why did it happen? Few would deny that the inequality in our society, poverty and unemployment of so many are among the root causes.

South Africa is limp wristed from unclear definitions and objectives that are used at different moments to drive ambiguous agendas. South Africa lacks a clear definition for transformation, and thus every other organ of change abdicates their role in shaping the country in a progressive direction.

The Job Seekers Exemption Certificate (JSEC) idea has been around for a long time. It was first presented to President Thabo Mbeki, who passed it on to the Department of Labour. But nothing was done with it. It seems that it is only when you are unemployed that you can understand that it will be like holding a piece of gold in your hand.

It is no secret that entrepreneurship and business creation is the lifeblood of economic growth and innovation. Research out of the United States by the Kauffman Foundation, for example, underscored that entrepreneurship is integral to job creation and economic progress.

Stats SA recently announced that South Africa’s unemployment rate increased by 0,1% to 29,1% of the population in the third quarter of this year. While this figure is at an all-time high since 2008, it is unrealistic to expect our government to reduce these statistics on their own.

Statistics South Africa (Stats SA) reported on October 29 that South Africa’s unemployment rate increased from 29.0% in 2019 Q2 to 29.1% in the third quarter. This was the highest jobless reading since 2003, and South Africa now has the joint fourth-highest unemployment rate out of 182 countries tracked by Trading Economics.

Tafadzwa Zimunhu Taruvinga, a young Zimbabwean, enrolls to study economics at Rhodes University in South Africa. As a foreign student, the fees are exorbitant, exacerbated by the fact that currency has become increasingly problematic in the ailing economy back home.

We are an investment manager investing in South Africa. Our capital comes exclusively from American investors. Being based in New York and Johannesburg gives us a useful perspective on how SA is perceived by the international investment community.