The last chapter

2016-09-05 11:14

The ANC government has just started writing the last chapter on South Africa as a developing country with the public hearings that are held by the independent legislative panel headed by former president Kgalema Motlanthe. The panel was established by the Parliament to determine whether the legislation which was introduced by the ANC after 1994 truly achieve their goals. It is specifically looking at legislation on poverty, unemployment and inequality; the creation of an equal distribution of wealth, restitution and land redistribution; security of tenure, as well as nation-building and reconciliation. The first hearings started in the Eastern Cape two weeks ago and will be continue in the other provinces during the coming months.

This step will undoubtedly hit the economy and prosperity of the country very seriously and it will in fact be an economic self-destructive process. None of these objectives are in any way achievable without strong economy growth on a sustainable basis. Any possible changes to the legislation will only be considered if it can help the ANC to try and stay longer in power. In this disturbing and unpredictable political phase in which the country finds itself, the organisation, like most political groups, will also focus on how they can recover their lost support in the local elections no matter what price the country will have to pay.

As if it is not enough that the ANC government is implementing the doctrines of the father of communism, Karl Marx's, through which all the profits of enterprises should be divided equally among all the workers, it now wants to follow another economic destructive path. With these public hearings it is clear that the ANC now also wants to follow the doctrines of the Russian dictator, communist and atheist, Vladimir Lennon to achieve these objectives through legislation. There can be no doubt that the amendment of these laws on this basis will plunge the country back in an underdeveloped country, where at least 85% of the inhabitants will become dependent on the agriculture and where poverty and hunger will assume much greater proportions.

In view of the imminent or even inevitable downgrading of South Africa's credit rating, the evaluation of this legislation could at this stage rather have been an excellent opportunity for the government to determine how destroying the huge stones were that were rolled in the way of sustainable economic growth and greater prosperity since 1994. It has in fact made the feasibility of almost all the objectives of the ANC government totally impossible, especially because economic growth is not its main objective as well as the fact that it does not have a clue how economic growth is driven and created anyway.

In the same light, the key question that is more and more asked is whether domestic and foreign investors should look beyond the political noise when they want to consider further investments in South Africa. Investors should in my opinion take serious cognisance and being informed that the country is in a state of irreversible decline and economic ruin and that no investment can be considered in the country. The associated risks are simply too high and this process of the ANC to force its socialist and communist policy on the country through the re-evaluation of its legislation will only increase it further.


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