The South African economy now resembles the slow-melting Antarctic ice shelves where a sudden instability and crumbling emerge, causing a dramatic cave-in of these buttresses and an inevitable and unrelenting acceleration of glacial flows into the sea. It is as if the long period years of economic melting caused by poor policies, public service inefficiencies and rampant corruption have brought the country to an irreversible tipping point.
There are signals of a sudden surge in movement in the destabilisation of trust and hope in a better future. This has already triggered an acceleration in the erosion of both the country’s productive knowledge and its capital base.
Fund managers of local financial service providers told EOSA of a substantial increase in local investors exiting local equities and investment instruments, shifting their investments off-shore.
And wealth managers of European banks who have escaped the January northern winters to visit their South African clientele, remarked that in almost every meeting with clients they were asked whether they do not know of someone in Europe who may be interested in a South African golf estate villa, seaside mansions or Lowveld game farm. They do not easily get interest from South Africans to invest in real estate here.