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    Posted November 10, 2012 by
    Potchefstroom, South Africa
    This iReport is part of an assignment:
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    Incompetence deepens Crisis

    The South African government did fairly well in buffering Africa's largest economy against recession in 2009. The Zuma administartion launched an ambitious state infrastrcuture development program worth an estimated R250 Billion ($US 30 Billion). The focus is on roads, rail, ports and utilities. The increase in expenditure was a good move due to South Africa's low debt (StatsSA estimate it at around 34.7% in 2011). But this has become watered down as corruption is rife and unrest is on the increase.


    The recent labour unrest that the world has witnessed at South African mines is not a new thing. Labour unrest has become part of our daily lives. The unrest has though made a dent in the armour of our diverse economy. Remember that even though we are one of the world's most mineral rich countries, mining only comprises around 8% of GDP. The unrest is mainly due to an ineffective labour department.

    The economic crisis in the EU is starting to hurt South African business because the EU is our largest trade partner. Further incompetence by the ruling ANC has led to the poor economic growth and a failure to deliver basic services which are essential to small and medium business.

    The reason for South Africa's mediocre 2.5% estimated growth this year is poor vision and planning by the government. The increase in corruption has also had an effect. An example is the construction of President Jacob Zuma's private residence estimated at around 30 Million US$. He is only contributing about 5% of that amount. The official opposition, the Democratic Alliance (DA) tried to visit the site but were threatened and intimidated by armed Zuma supporters. The DA together with 8 other parties has proposed a motion of no confidence in the president in parliament after this and other incidences.

    The audacity of the presidency to construct such a palace in a poor rural area whilst in an economic crises while many South Africans still live below the poverty line and continue to struggle daily for economic freedom is staggering.

    Corruption is at an all time high and government is further tightening labour laws which will make it nearly impossible for unproductive employees to be fired.

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