The year 2020 will be remembered as one of unprecedented uncertainty, and 2021 looks set to not buck its predecessor’s trend. Prof Raymond Parsons from the Business School at the North-West University (NWU) looks ahead at what the new year will hold for the South African economy and consumers alike. This is the first part of a series of articles.

As the world and South Africa continue to struggle with the seismic impact of the Covid-19 pandemic and with renewed surges in Covid-19 cases, social tensions are surging and severe socioeconomic consequences abound.

With over 16 years of service at the North-West University (NWU), Prof Jan van Romburgh has been appointed as the chief director of the North-West University Business School.

The North-West University (NWU) Business School recently presented a Think Tank on the topic South Africa 2024 – a scenario perspective.

Dr Frans Cronje, CEO of the Institute of Race Relations, and Dr Oscar van Heerden, Director Operations at the Mapungubwe Institute for Strategic Reflections, made presentations.

This particular Think Tank focused on political, economic, social and technological variables and the impact this will have on South Africa’s future towards 2024.

The latest decisions by both Fitch and Moody’s to cut South Africa’s investment grade rating further into junk status are not good news for the South Africa economy.

Prof Raymond Parsons, economist at the North-West University (NWU) Business School, says it again highlights the urgent need for South Africa to change its economic narrative.

Prof Raymond Parsons, economist at the North-West University (NWU) Business School, says the latest decision by the Monetary Policy Committee (MPC) to again leave interest rates unchanged was widely expected, given the economic model on which the South African Reserve Bank (SARB) is operating.

“The election of Joe Biden as United States (US) president-elect could eventually create an opportunity for South Africa to buttress its economic narrative with the US from both a trade and an investment point of view.”

According to Prof Raymond Parsons, economist at the North-West University (NWU) Business School, the difficulties and dilemmas facing Minister of Finance Tito Mboweni in the latest MTBPS must be acknowledged, and the credibility of the latest fiscal framework will now largely rest on the extent to which the growth plan and other structural reforms are actively implemented and deliver a better economic performance.

The North-West University is on the shortlist for two global awards and another one focusing on Africa in this year’s Excellence Awards of the Chartered Institute of Management Accountants (CIMA).