The global Covid-19 pandemic has seen unprecedented economic disruptions during the last few months.

According to North-West University (NWU) professor of Economics at the NWU Business School, Prof Ravinder Rena, it will take a very long time for the country’s economy to recover meaningfully after the measures introduced by government to curb the spread of the global virus.

“South Africa’s lockdown also impacted domestic prices and supply chains, and almost every sector of the economy has been negatively affected,” he says.

“It is important to note that the South African economy has been underperforming for more than a decade, especially since the global financial crises of 2008/2009.

“During 2014-2019, tax collections were less than targeted, causing a sharp increase in government debt levels. These fiscal imbalances prompted all major ratings agencies such as Moody’s, Standard & Poor (S&P) and Fitch to downgrade South Africa’s sovereign debt even before the Covid-19 lockdown impacted the economy.”

Prof Rena highlights that before going into the national lockdown youth unemployment levels were at an all-time high with no respite in sight.

He adds that there is an expected increase in those numbers as many businesses have had to close as a result of the lockdown.

Post Covid-19, Prof Rena is of the view that government needs to bring real reforms that can broaden and accelerate the recovery of the economy. He signals a stronger focus on the rural economy as one such reform to unlock the kind of economic growth needed in what will be an ailing economy for the near future.

“After 26 years of constitutional democracy, the existing South African economic models are outdated – we need to look for a new vision and new growth models for sustainable economic development,” says Prof Rena.

Prof Ravinder Rena.