Home Opinion & Columnist Report draws chilling comparison between South Africa and Zimbabwe

Report draws chilling comparison between South Africa and Zimbabwe

by reporter263

By Ezra Claymore

Earlier it was reported on the number of millionaires leaving South Africa, but the same report has highlighted some interesting and alarming similarities between Zimbabwe before it collapsed and SA right now.

Ok so New World Wealth brought out their 2016 South Africa Wealth Report and it clearly shows a decline in millionaires locally… due in part to the economic climate, but mostly caused by high net worth individuals moving overseas and taking their money with them.

According to Andrew Amolis, head of research at New World Wealth, the largest stumbling block to progress in South Africa – and subsequently holding on to our millionaires —  is the extent of government’s intervention in the economy.

Mzanzi scored a measly 2/10 in the above-named category, because “the ANC government increasingly tampers with the business sector”.

Add to this the people’s loss of faith in the ANC because of BEE; compulsory affirmative action and the seeming immunity of failing SOE’s like Eskom and SAA and you can see why the folks with the cash just don’t want to stay.

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Now, while we performed piss poor throughout most of the report, our worst ranking by far is in tax levied on businesses (1/10) and high trade union involvement in government affairs and the labour sector, earning us another 1/10.

The reason for our poor score when it comes to the unions, according to Amoils, is thanks to SA’s trade unions contributing massively to unemployment and inflation. What’s more, unions directly contributed to the closure of some of the country’s mines and crippled the platinum sector – South Africa used to export 75% of the world’s platinum –.

Now, while the unions cause havoc in the economy, at least the banking sector (9/10) and media (8/10) scored reasonably high, “preventing government from getting away with wrong-doing and setting SA apart from most other African countries,” Amoils said.

The more unnerving part of the South Africa Wealth Report flagged a few key points that should be cause for concern, according to Amoils:

  • Increasing government regulation in the business sector
  • Increase in labour action and strikes, impacting the mining sector
  • HIV prevalence among adults is estimated at around 22% of the population
  • Government corruption relating to personal spending and tender grants
  • Unemployment rate of 24%
  • High crime rate, putting people off from coming over here and finally
  • The haemorrhaging of wealthy individuals taking their money out of the country
  • Student protests
  • Declining commodity prices and,
  • Our far-from-over electricity crisis.

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