It’s no lie when we say South Africa is the most advanced African market place. However, South Africa’s economy seems to lead to a sharp devaluation of the local currency and all that political mismanagement, failure to deliver structural change, and over-reliance on commodities has caused South Africa’s economy to stutter.
The outlooks don’t look to hopeful and it’s expected for Standard and Poor’s to further downgrade the country’s status in the next review which is currently negative. This will surely affect the ability for the country to achieve the economic development that it desperately needs.
One stable part of the economy that seems to grow more and more is the gambling market with South African online casinos and casino gambling being at the forefront. If you go at www.southafricanonlinecasinos.org.za you will not only see sites based in South Africa, but international ones that focus on providing South Africans with such services. The population seems to show great interest to visit site that gives out no deposit bonuses.
The taxes that are collected from such sites provide great boost to the overall economy, but not enough to save it from falling down. If you had to bet on the future of the South African economy, how would you bet? Maybe this could be a very profitable bet if online gambling sites offered it.
How did one of the most developed African economies fall to the current levels? Well, one of the bigger factors that caused this was the contraction of the Chinese economy. The most exposed to the Chinese market are Zambia and South Africa, and all of that had a negative effect throughout the country and continent.
The largest consumer of South African raw materials is China, and with the fall of the Chinese demand for such materials, South Africa suffered too. All exports have cheapened due to the devaluation of the Yuan too, which hurt South Africa’s balance for trade. Not only that, China’s investments have dwindled all across South Africa, which was severely felt because China is a major investor.
However, not all can be blamed on China. South Africa itself has shown incapacity to evolve sufficiently. The middle class is slowly disappearing and inequality seems to spread more and more, which the local government attributes to the inhibition to develop as a remnant of the Apartheid, while the critics blame the fundamental failure of the government to deliver reform.
Nevertheless, not everything seems hopeless. There is still way to save the economy by decreasing the expenditure bill and establishing a favourable balance of trade. The conditions for foreign direct investment need improvement too without damaging the crucial sectors. All the country needs to do is give chance to respected economic leaders and let them steer the economy.
A well-designed and well-balanced budget can do great for the country and delay the downgrading of the status by Standard and Poor’s. It still can be said that the country is sufficiently rich with a well-capitalized banking system, and in the 2015-2016 Global Competitiveness Report the country was ranked 49th, which is an up from the previous 56th spot, and 1st for financing through local equity market and for strength of auditing and reporting standards. Furthermore, the country was also ranked great for financial market development, 12th. The spots for business sophistication and innovation are also positive, 33rd and 38th out of 140. So, with a good focus on the positive things there is always hope!