CULTIVATING CONFIDENCE
The South African economy has been on a downward spiral for a number of years, undermining many of the dividends that initially flowed from the country’s transition to democracy. There are many reasons for this poor performance, but there is no question that corruption and poor governance are major culprits. Cultivating confidence again will be critical to tapping any residual goodwill towards a country that, 25 years ago, was viewed as a beacon of hope. To bolster confidence, South Africa will have to demonstrate that it is serious about cleaning up its act. If it succeeds, the country has every chance of escaping its low-growth trap.
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