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Recession is ‘transitional issue’ – Ramaphosa

‘All these things that are happening now are transitional issues that are going to pass.’

South Africa’s slide into recession is a “transitional issue” from which the economy will soon recover, President Cyril Ramaphosa said in comments published on Thursday, repeating promises for a stimulus package to reignite growth.

Ramaphosa has staked his reputation on reviving the economy after a decade of stagnation under his predecessor, scandal-plagued Jacob Zuma, whom he replaced in February.

But Ramaphosa suffered a major disappointment when data showed on Tuesday that the economy had shrunk 0.7% in the second quarter, unexpectedly tipping the country into its first recession since 2009.

“All these things that are happening now are transitional issues that are going to pass,” Ramaphosa was quoted by local news agency Eyewitness News as saying, in his first comments on the recession shock.

“I will be meeting with the business community soon, so that we rally everyone together and pull our country out of the situation that we are in,” added Ramaphosa, who was attending a China-Africa summit in Beijing when the data was released.

The rand has slumped more than 5% against the dollar this week and government bonds have sold off steeply, also hurt by the turmoil on Turkish and Argentinian financial markets.

Several foreign banks have slashed their growth forecasts for South Africa to less than 1% this year.

In a statement issued on Wednesday, Ramaphosa’s party, the ruling African National Congress, said the recession was the result of a “prolonged trend of slowdown in economic growth”.

It said there was an urgent need for measures to reverse the economic decline and suggested there could be tax credits for companies which support job creation. 

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Zuma was also a “transitional issue” and so was State Capture.
Let’s hope that the corrupt ANC being in government is also a transitional issue.

Indeed – what did that one promise, o ye, A MILLION JOBS. They are still waiting…

This transitional issue will sadly lead to PERMANENT ruination.

NO CR-stop the words.
Even if you stop EWC the ANC will probably win the elections so DO the following:
1. Change EWC to Land reformation acceleration but with fair compensation
2. Get some initiatives going eg farm workers to own their houses and have title to that piece of land
3. Lock Zuma and his fellow gangsters up
4. Appoint Steven Koseff as the SARS commissioner-pay him R100m per annum-its worth it!
5. Drop Company tax rates but up dividend taxes
6. Defer NHI indefinitely
7. Make Jeremy Gauntlett head of the NPA with a good general manager as his deputy-he has teh brains-just needs support on organisation eg Get MArk Lamberti back-to atone for his sins he can work for R1…but he will deliver!

That is the problem with NPA. Government officials are made prosecutors,magistrates and even Judges. No experience or qualifications.They should follow USA where every prosecutor /judge is a qualified lawyer-board exam etc. No wonder the private practicing lawyers like Gauntlett eat up the prosecutors and so called “state attorneys”in court.

Great ideas Sam but I fear there are too many holes in the Swiss cheese (as well as money in Swiss bank accounts). Mark Barnes is learning this lesson at SAPO. You can do what you like at the top but if the structure and its foundations are rotten, you will not succeed.

Now in SA the top and the structure and its foundations are ANC termite rotten so there is little chance of improvement I reckon, although hope the opposite.

CR is correct in a way:

In my view, SA is not “failing” or sliding among various rankings. It’s merely READJUSTING (returning) to the ‘mean-average’ of the African states south of the Sahara, post colonialism. (It’s how people accept it, or not)

Our leadership is making the same mistakes/direction as their African compatriots. Why then would SA be any different or deserve special treatment??? (“cause & effect”)

Well pointed out.

However, South Africa’s imbalance of rich and poor is still drawn along racial lines unlike other Sub Saharans. That’s going to lead to many more years of social upheaval with race cards being played in this transition.

Also puts escalation Zim style as a possible scenario if imbalances are not addressed soon.

So let me get this:
You want to spend more money developing the economy however the QE had stopped in the rest of the world and those central banks are going to increase their interest rate.

So with what new money are you going to spend, let me guess raise taxes and take the $50bil reserves from the reserve bank.

Because you are already spending 5% more than you generate do you honestly think the unions will allow you to cut back? No because you already tried that with Eskom.

Just because you throw more money at something it will not make it better.

What we are witnessing the Southern Africa Spring.

But yes put the anc before the country. YOU ARE TOO WEAK CR, YOU DO NOT HAVE WHAT IT TAKES TO PUT YOUR PARTY INLINE BECAUSE YOU ARE ALL ABOUT GREED.

PurgeCoin, I was actually typing something along these lines but you just put it better. I may just add that Black Friday for China and all things South African are going to marked down really cheap!!!!!!!

The reality is that no new 10 or 14 point plan will put the economy back in gear.

South African leadership have lost the trust of the international and local community. That trust is worth a million tons of gold.

Generally I’m a positive person, but the sad reality is that we all miss placed our trust. In just 6 days my will emigrate not because we are running away but because we need to do what is necessary to survive.

People might not see it now but October will be a full blown Winter Storm across South Africa.
Moody’s downgrade…

“The Democratic Alliance (DA) caused an upset in Nala on September 5 by winning a ward off the African National Congress (ANC) in this Free State municipality”.

This is the voter backlash commencing.

Interesting result. Oviously DA helped massively by FF+ not fielding candidate, but the increase in votes in the township area is really impressive. Challenge for the DA will be to get its traditional voters to still go out and vote – think a lot have become disillusioned with DA pronouncements taking it ever leftward. DA will probably point to increase in votes in township in justification. Should not jump to conclusions but interesting

Ward 2 in Nala (Wesselsbron Monyakeng) in the Free State. DA 49% (28%) ANC 44% (49%) EFF 6% (5%)

Nala municipality is an ANC controlled municipality in the maize belt of the Free State. Its principal towns are Bothaville and Wesselsbron.

Ward 2 is centred around the town of Wesselsbron, and includes the township of Monyakeng and a tiny rural voting district. Even though the ANC won the ward by over 400 votes in 2016, it was still deemed a competitive ward as the ruling party was not able to win more than 50% of the vote. The VF+ came third here with 16% of the vote in 2016 and they decided to not contest here this time. If one had to simply add the DA’s percentage vote share of 28% to the 16% of the VF+, the ward looks marginal. The DA though had a double challenge, and that was to convert as many of the VF+ from 2016 as possible and at the same time increase their vote share in Monyakeng township, where the majority of the voters in the ward reside. 1

The DA overturned a 416 vote deficit and won here by 96 votes on Wednesday. This was achieved by getting approximately 70% of the voters who supported the VF+ in 2016, but at the same time significantly increasing their vote tally in the two Monyakeng voting districts. At the Letsibolo School voting district in Monyakeng, the ANC’s percentage vote share went down from 74% to 58%, with the ANC receiving 124 less votes compared to that of 2016, getting 524 votes this time round, down from the 648 they got in 2016. In contrast the DA more than doubled their vote tally, going up from 134 votes in 2016 to 278 votes last night, an increase from 15% to 31%.

Not good enough. Stating the bleeding obvious. Yes recession will be transitional. It is a discrete event, like a period of rain. The problem is more what happens when we are out of recession, still sadly underperform

South Africa’ s economic woes is not a ”transitional issue ” , we are in a permanent downward avalanche, caused by ANC economic mismanagement.
It beggars belief that people actually belief that we are in a recession , it is rather a more permanent period of wanton destruction , no less .
It will only change if the ANC is removed .
Why can so many countries in Africa achieve economic growth ( now) of 5% and higher , while we can not?

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