PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Reality
 
Comments: 71
Article views: 1924
 
 
Latest Badges:


 
View all Reality's badges.
 

Disinformation or just ignorance?

06 January 2014, 11:54
Yesterday, I had a discussion with 3 gentlemen on the News24 website ( Luzuko Mtoyi , Jones Phu-t Lekgoara and Elimu )

These 3 gentlemen were adamant that when South Africa was handed over to the ANC in 1994 it was a bankrupt state and that we were still paying of those debts today. The more I tried to explain that it was simply not true, the less they believed me.

So, to settle this once and for all, I am going to explain why I believe that it is not true and then I would appreciate it if these 3 gentlemen (and everyone else who wants to) would tell me where I made the mistakes in my calculations or where I missed the boat completely. Please supply reliable evidence for this as I will try to do the same.

Please note that I do not endorse the apartheid state as I think it was a horrendous abuse of human rights which should never have happened. All I am saying is that we owe it to ourselves to be truthfull, honest and understand the reality of the situation. The fact is that in rand terms South Africa's External debt has grown from R 94 billion in 1994 when we were supposed to be bankrupt, to 14.6 times that namely R1375 billion. If we were bankrupt  back then, we are now super bankrupt.

Ok, to start off, here are some external debt figures. External debt is the component of a country's overall debt that is owned by creditors outside of the country.
www.ehow.com/about_6573276_?definition-external-debt.html

(I have rounded the figures to the nearest billion)

External Debt
1994: $26 Billion = R 94 billion
2013: $131 Billion = R1375 billion
Ratio: 1:14.6 (Rand terms)

GDP:
1994: $130 billion = R 468 billion
2013: $384.31 = R 4032 billion
Ratio: 1:8.6 (Rand terms)


The external debt has ballooned from R 94 billion in 1994 to R 1375 billion today.
From the above we can see that the external debt has grown 14.6 times from what it was 1994 while on the income side our GDP has grown only 8.6 times to what it was.

Furthermore, mostly all rating agencies in the world has downgraded us and the above is one of the reasons

I would like for the 3 gentlemen to explain how having debt 14.6 times higher and income only 8.6 times higher is better. I believe that South Africa is much closer to bankruptcy now than in 1994

Please feel free to tell me where I am wrong.


Below you can find references and more information to where I got the information from.
--------------------------------------------------------------------------------------------
GDP: 1994: $130 billion
http://www.indexmundi.com/facts/south-africa/gdp

GDP: 1994: $384.31
http://www.tradingeconomics.com/south-africa/gdp

South Africa's international debt back to US$25.8 billion at the end of 1993..
http://www.photius.com/countries/south_africa/economy/south_africa_economy_external_debt.html

Exchange rates
In 1994 the exchange rate was R3.60 to the $
In 2014 the exchange rate is R10.50 to the $
I have used R10.50 to the $ even though it is listed as $10.68 on the News24 website

A host of local and international events influenced the currency after that, most notably the 1994 democratic election which saw it weaken to over R 3.60 to the dollar...
http://www.exchangerate.com/currency-information/south-african-rand.html

The SA Reserve Bank website sheds further light on the subject and it doesn’t look good. A little line in the Economic and Financial data page says that South Africa’s external debt amounted to $131 555 000 000 (that’s in US dollars) in the first quarter of 2013. So how does this amount square with the “level of debt” discussed above?
southafricanewstoday.com/South-Africa-News-Today-Sovereign-Debt-It%27s-Okay,-Just-Borrow.html

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
71 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
John Murphy
Rugby

The despised English introduced Rugby in 1858 and it became so popular that in 1902 there was a temporary ceasefire in the Second Boer War so that a game could be played between British and Boer forces. Read more...

1 comments 144 views
Submitted by
NomfundoMlaba
Dark side of a rainbow nation

As a privileged born free of South Africa, I am deeply agonised to see how much we as the privileged youth don’t appreciate the simple things in life. Read more...

6 comments 836 views
Submitted by
Matjila Alejandro
Amplats’ cowardice should not be ...

I urge the powers-that-be to hurry and table legislation that would make what Amplats is doing illegal soon and to force other players to respect the workers’ right to strike and to fair bargaining. Read more...

8 comments 122 views
Submitted by
Reflect 014
Treachery part 4 - Ideology – the...

The author of pawns asserts that whichever side wins out, the internationalists of either persuasion will call for a world government as the only solution to handling humanities problems. Read more...

4 comments 55 views
Submitted by
Terence Wessels
It's hard not to give up!

I cry for my country, she is dying in front of us, and we are all powerless to stop her murderer. Read more...

10 comments 305 views
Submitted by
Bolsheviks Partysa
Government's proposed retirement ...

Members to the pension fund should remain in control of the funds and treasury and or government should allow members to withdraw the funds as and when they wish to do so. Read more...

6 comments 385 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

2 TV Series for R250

Get 2 TV Series box sets for R250 and save up to R148! Offer valid while stocks last. Shop now!

Mind blowing deals on beauty & fragrances

Save up to 30% off beauty and fragrances. Offer valid while stocks last. Shop now!

Up to 50% off hair care products!

Save up to 50% on professional hair care products at kalahari.com. Offer valid while stocks last. Shop now!

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

Mind blowing deals on electronics!

Save up to 35% on electronics. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.