The North-West University (NWU) Business School held a think tank on Monday, 8 July, titled SA’s future economy – is it fit for purpose? Prof Piet Croucamp, political analyst and affiliate of the NWU Business School, served as moderator and the panellists comprised Prof Raymond Parsons, Wandile Sihlobo and Christo van der Rheede.
The much-anticipated announcement by President Cyril Ramaphosa of the new Government of National Unity (GNU) Cabinet is, on the whole, good for business and investor confidence.
Prof Raymond Parsons, economist from the NWU Business School, says the markets are likely to respond positively as they digest the new mix of Cabinet appointments.
The facts are irrefutable: South Africa is a country rife with corruption that is undermining our democratically elected institutions and hampering our economic growth. Corruption is not a disease in this country, it is a pandemic. But, for every disease there is a possible cure and pandemics can be curtailed. The North-West University (NWU) Business School, through its Unit for Corruption and Integrity Studies (UCIS), is endeavouring to inject some sense where sensibility has been lost.
After having held highly successful free, fair and peaceful watershed elections on 29 May, South Africa has now embarked on the formation of a Government of National Unity (GNU) to navigate an election outcome in which no single party achieved a majority. To manage the new political dynamics and provide stability, a GNU is now being formed.
Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says high-growth economies typically build their prosperity on sturdy and stable political foundations.
The negative gross domestic product (GDP) growth figure of -0,1% quarter on quarter again reflects how difficult it has been for the economy to gain momentum in the recent past.
In commenting on the GDP figures released by Stats SA on 4 June, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says although GDP growth may yet reach about a modest 0,9% in 2024 as a whole, total GDP in the first quarter of 2024 is in fact lower than the peak reached in the third quarter of 2022.
“Against the background of the interim results thus far of the country’s pivotal 2024 elections, South Africa is for now in uncharted and uncertain waters, which is reflected in the initial reaction of the financial markets and the rand.”
Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says while the emergence of coalition government, both at national and provincial levels, is not unexpected, the exact configuration of coalition arrangements could have an important impact on South Africa’s economic performance.
The latest Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) statement was again surprise-free, the committee having, for the sixth time over the past year, kept interest rates unchanged.
In commenting on the decision by the MPC to again leave interest rates unchanged, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says that, as expected, borrowing costs will therefore remain higher for consumers and business for longer.
A groundbreaking collaboration between the North-West University (NWU) Business School and Naledi Ringrollers (Pty) Ltd is now in its third year. This initiative aims to fund young, upcoming entrepreneurs who can help address socio-economic issues such as unemployment, inequality and poverty by imparting entrepreneurial skills and education.
A multi-authored book edited by renowned economist Prof Raymond Parsons, from the North-West University (NWU) Business School, aims to encourage and empower voters to make informed choices in this critical election year.
“There is no going back, and the options have dwindled. In the grand scheme of things, South Africa is no longer at the proverbial crossroads, but rather at a T-junction,” says Prof Parsons.
He edited and co-authored the book Tipping Point ─ turmoil or reform? South Africa’s political economy after 2024, which has been published by Jacana Media.
Commencing in 2024, Prof Alistair Mokoena, Google South Africa’s country director, pledged to donate R50 000 to the North-West University (NWU) annually. According to Prof Mokoena, the sum of the funding will go into the Dr Alistair Mokoena Education Fund and will be used to support any student in need of financial assistance.
Prof Mokoena believes contributing towards the advancement of knowledge and innovation can help enrich the educational experience of students beyond the classrooms.