Here’s an ideal Freedom Day in-depth read for you. Brilliantly researched and objectively written, Dr John Swart traces how South Africa got to where it is today and where the Zumafication of the nation will take it to. This is a well reasoned thesis that ends with a surprisingly optimistic conclusion from a man whose family has felt the sharp edge of violent crime. Take the trouble to read it and you’ll be well rewarded with a more balanced perspective than you’ll get elsewhere. – Alec Hogg

By John Swart*

Since the shock announcement of the replacement of the former Minister of Finance in December last year, a wave of negativity has swept across South Africa like never witnessed before and while there has been some reprieve – brought about by a slight recovery in the SA Rand (largely driven by improved Emerging Market sentiment) and a less than favourable Constitutional Court judgment against our President, dark clouds are still hanging over the country.

South Africans, or at least those not emigrating, have developed a kind of resilience to process, accept and march on. But for how long can we carry on like this? How will it end?

Here is a snapshot of  challenges facing SA today:

• High unemployment (26%), but perhaps closer to 40% – worst on the list of 51 OECD countries;
• Soaring crime rates – cited one of the most dangerous countries to live in with less than 30% of murder cases solved (Institute of Security Studies – Sept 2015);
• High levels of corruption;
• Education levels that seems to deteriorate every year;
• Universities in crises;
• Ailing road infrastructure;
• Bankrupt city councils and service delivery at worst levels ever;
• Electricity shortages stifling business and hampering growth;
• Agriculture heading for a crisis – exacerbated by endemic farm attacks and murders (318 attacks and 64 murders in 2015 alone – according to statistics released by AFRIFORUM, a civil-rights organization linked to the Solidarity trade union), an extended period for the lodging of land claims and, currently, also one of the worst droughts in living memory;
• Illegal immigrants that place a burden on limited resources and contribute to increasing crime rates;
• Government debt at a near record 48% of GDP;
• The Rand at or near its lowest level against the US Dollar (losing 50% of its value over the past 5 years);
• The worst credit rating the country has ever had – potentially facing another credit downgrade later this year which will reduce SA bonds to junk status;
• A Government headed by a President, who is incompetent and an embarrassment to most level-headed citizens of this country and many stalwarts of his own party;
• A small tax base threatened by higher taxes to meet growing government expenses towards a largely unproductive workforce; and
• Rising interest and inflation rates.
• Business confidence levels are the lowest in 5 years (RMB/BER)

For most, the so-called “Finmin debacle” that played out between 9 and 14 December 2015 and the subsequent tumble of the Rand and equity markets was simply the last straw. I realised then that it was time to take a long hard look at SA politics and economics in order to make some sense of what is happening around us; to take a position (which is imperative in my line of work); and to find ways of navigating through the portentous storm.

To assess the situation we are in, we need a better understanding of where we came from and how we landed here. To this end, I identified three distinct periods, which are best summarised by the captions selected for each such period and under which I will only highlight the most significant issues.

The sins of our fathers: 1978 – 1993

To obtain an even better understanding one actually needs to start the journey much earlier than 1978, but, due to space constraints and for the simplification of data comparison, I will only use the last 16 years of the journey towards a constitutional democracy.

South Africa was struggling to survive. Notwithstanding the gold boom between 1977 and 1980 and the massive windfall that it yielded for the South African economy, the average growth rate achieved was a very disappointing, even a measly 1.4% per annum on average, while population growth was markedly higher, averaging out at 3.6% per annum.

For most of us it is unthinkable today, but the average (prime) rate of interest was 15.95% per annum peaking at 25% in 1984 and again in 1985. The Rand depreciated at 8.51% per annum – ending at R 3.38 against the Dollar by the end of 1993.

The media was controlled by Government. The former Southern Rhodesia (now Zimbabwe) got television some seventeen (17) years before South Africa as the exposure of its citizenry to the international free-market media was considered a huge threat by the country’s erstwhile rulers. (Matisonn, 2015)

Read also: How the world sees us: Tim Knight – SA’s slide from Madiba to Zuma. Oh Boy.

The policy of separate development and the subsequent establishment of ten (10) “self-governing” homelands had been conceived in the mid-forties. However, it was only in 1959 that the Promotion of Bantu Self-Government Act No 46 of 1959 was promulgated to provide legislative authority for the creation of these future homelands. The Transkei was the first one to be declared independent in 1963, but  due to a variety of problems and obstacles that were encountered along the way, the remainder were only established in the seventies.

The homeland policy was not only morally indefensible, but the professed objective of making these homelands self-sustainable was also proving to be hurdle too far. More than 80% of South Africa’s population was forced to occupy 15% of the land with little or no infra-structure. The true cost of how much successive South African Governments have spent in the development and maintenance of this policy will never be known, but, for present purposes, it suffices to say that it was many, many billions. The homelands ceased to exist in 1994 when South African became a constitutional democracy. At the time, more than 650 000 people were employed on a permanent and full-time basis by Government to administer these areas alone.

Apartheid laws forced black male breadwinners from these homelands, who were employed in mines and factories to live in poorly equipped and dilapidated hostels – far away from their families – resulting in the destruction of the very fabric of society.  Poor living conditions and criminal activities in and around these hostels often left children orphaned, many of whom ended up eking out a life of misery on the streets. We are experiencing the effects of this today and will continue to do so for many years still to come.

The former South African Defence Force (SADF), cost many more billions, both in terms of its capital and operational expenditure. Years of productivity of was lost through a system of compulsory military service, where educated people, including ones with a tertiary education, were taken out of civil society to provide manpower to the SADF.  This disrupted industry and hampered economic growth.

Imagine our country today, if the billions spent on establishing, maintaining and enforcing the homeland policy, had rather been spent on the education of all its citizens and other vital infra-structure development.

Read also: Desmond Tutu’s warning shot: Zuma and ANC worse than Apartheid Govt

The Bantu Education Act No. 47 of 1953 was one of apartheid’s most offensively racist laws. The historically derogatory name of this statute, was founded on the Bantu education policy invented by Werner Eiselen, a close ally and associate of Hendrik Verwoerd. Education for black scholars was disgracefully limited. By 1976, only R6 per year was spent per capita on a black child’s education, while R100 per year was spent per capita on a white child’s.1Less than 12% of the annual amount budgeted for social spending, was allocated to blacks while they made out more than 80% of the entire population. Moreover, the standard of black education was lower than those of most other African Countries.

During these 16 years prior to the dawn of the new constitutional dispensation, unemployment rose dramatically from 20% to 36% of the workforce. Also, by the end of 1993, the ratio of Government debt to GDP had reached 54%.

The apartheid model might have worked well for the few (less than 20% of the population), but it was immoral and unsustainable. South Africa became isolated from the world, unrest escalated and a total economic collapse was imminent. Change was urgently required.

The Rainbow Years: 1994 – 2009

Thanks to visionary leaders such as the late Mr Nelson Mandela, the first President of the new South Africa, and Mr FW De Klerk, the last State President of the previous regime, as well as other leaders such as the late Mrs Helen Suzman, the late Dr Frederik van Zyl Slabbert and Mr Thabo Mbeki and many others (coupled no doubt with a  fair amount of influence from business and foreign governments), a peaceful transition took place which lead to the first democratic election on 27 April 1994.

Under the reconciliatory leadership of Mr Nelson Mandela, South Africa was welcomed back into the international arena  and huge advances were made. Under the astute, albeit possibly less popular, leadership of Mr Thabo Mbeki, these relationships were improved further. A solid financial and economic framework was established under the prudent leadership of Mr Trevor Manuel and, some years later, Mr Pravin Gordhan (both Ministers of Finance) and Mr Tito Mboweni (the former Governor of the South African Reserve Bank (SARB) from 1999 to 2009). The consequences of this framework were sound monetary policy and fiscal discipline which bolstered confidence in the country and saw the Rand doubling in value from its low in 2002 to a steady R 7.37 to the US Dollar by the end of 2009. During these so-called ‘rainbow years’ the Rand depreciated by an average of 4.9% per annum against the US Dollar, which was in-line with all Resource based economies’ currency rates.

During these years we also saw the improvement and redevelopment of airports, new toll roads, the commencement of new power station developments and the development of a rapid rail link – known as the Gautrain – between Johannesburg and Pretoria, as well as between Sandton and the Oliver Reginald Tambo International Airport.

Inflation and interest rates calmed to more consistent and acceptable Emerging Market levels, making it easier and more productive to plan and do business in South Africa. The rate of inflation averaged 7.6% during these years, while the prime interest rate averaged 19.3% per annum during the initial years and ultimately reducing to 10.5% at the end of 2009.  A Report from The Research on Socio Economic Policy unit at Stellenbosch University (2013) showed the black middle class growing from 11% of the population in 1994 to 41% in 2012 – a remarkable positive achievement under the “Rainbow years” of the new Government’s leadership.

By the end of 2009, Government debt was down to 26% of GDP.  The average growth rate was up to 3% average over these 16 years, more than double the rate of the previous 16 years prior to 1994. This, despite the controversial arms deal, which cost the Government in excess of R100 billion, and which to this day continues to plague President Zumawith allegations of corruption scandal. (Feinstein, 2007]

Life was certainly better for most and during these years a large number of South African millionaires were made.

However, all of the credit for the good fortune cannot be attributed to the Government alone due to a number of factors, including the fact that:

1. SA came off a low base in the early nineties;
2. Emerging markets, fuelled by huge Chinese expansion, were in favour and attracted large investment from the first world. South Africa got its fair share;
3. Commodity prices (on a weighted average basis) doubled between 1994 and 1999 with an average growth of 4.4% per annum boosting South African mines and export revenue;
4. The advent and growth of cellular communication and the internet boom;
5. Global growth and excess credit world-wide setting the tone for a bull market that ended in 2008.

March 2009 heralded the end of one of the biggest stock market crashes in 80 years. The world sank into a deep recession and investors’ confidence levels were at an all-time low.  Dubbed as the ‘credit meltdown’ even one of the oldest US banks, Lehman Brothers, was obliged to file for protection under the Bankruptcy Code of the United States.  Billions were lost in equity and property values.  South African banks – least affected by the turmoil –mainly due to the National Credit Act No 34 of 2005 and sound management – escaped the demise and paved the way for a quick recovery and the start of one of the longest bull markets of all times, despite commodity prices that started on their downward spiral.

Cry the beloved country: 2010 – 2015

One could argue that South Africa, and in particular the ANC Government, lost its way since the appointment of Mr Jacob Zuma as President in May 2009. But, as in every other aspect of life, every story has two sides and, hence, I will begin this part of the discussion by pointing out two external factors that the Government had little or no control over.

In the first instance there was a global recession, which directly affected South Africa’s main trading partners from 2010. The aftermath of this recession is still today affecting many parts of the world’s economies, and South Africa is no exception. In particular, China’s slowdown in growth and shrinking demand for resources led to a 23% fall in commodity prices over the past five (5) years – again on a weighted average basis – which, in turn, led to large scale retrenchments in the SA mining sector and consequential hardship for those employees and the affected communities in which they and their families reside.

On the other hand, there were also other external factors that provided a tailwind for the South African economy, namely a fall of more than 70% in the oil price (even more since the high of 2008), a global equity bull market and a relatively low interest rate environment worldwide. These external factors helped in South Africa achieving an average growth rate of 2.5% per annum during the past 6 years.

Read also: How world sees SA: Destructive Zuma busy hollowing out the Beloved Country

The benefits of continued sound monetary management, kept the average rate of inflation down during the past 6 years to an attractive (in the South African environment) 5.7%, while interest rates fell to an all-time  low in South Africa of 8.5% in 2012 with an average rate of 11.6% per annum.

But, alas, this is where the good news ends.

Mr Zuma was set on creating a network of cronies – referred by some as “Zumafication” – as is manifested by a series of highly controversial and questionable appointments.

Such appointments include, but were not limited to:

• Menzi Simelani appointed by Mr Zuma as Director of the SA National Prosecuting Authority in December 2009. He was suspended in 2012 after judgment by the Supreme Court of Appeal that found Zuma’s decision to appoint him “irrational” and “unconstitutional”. He is still the subject of investigation.

• Faith Muthambi – Minister of Communication – the fifth in just as many years.

• Bheki Cele, who awarded himself the rank of General after he was appointed as head of Police: Cele was a strong Zuma supporter.  He was suspended in 2012 after a board of inquiry found him “unfit” for the position after “maladministration” only to be appointed as Deputy Minister of agriculture in 2014.

• Riah Phiyega, an individual with no previous police work experience, appointed by Mr Zuma as Commissioner of the SA Police Service in 2012 only to be suspended after the Farlam Commission found her partly responsible for the Marikana massacre. She has just become the third police commissioner to fall from grace.

Other questionable appointments under ANC Government include:

• Lucky Montana – Passenger Rail Agency of SA CEO and lead engineer Daniel Mthimkhulu (also accused of false qualifications): Suspended and now under investigation following a R58 Billion ill-fated tender to acquire new locomotives.

• Dudu Myeni – CEO of South African Airways: Friend of Mr Zuma and allegedly one of the role players in former Minister of Finance Nhlanhla Nene’s sudden discharge in December 2015 after he refused to approve the purchase of 10 new A320 Airbus aircraft – a transaction clouded in controversy.

• Robert Mdluli – Head of Police Crime Intelligence appointed in 2009. Arrested in 2011 on charges of murder, intimidation, 3 counts of kidnapping, 2 counts of assault, attempted murders and conspiracy to commit murder. Six months later he is also charged with fraud and corruption (including the appointment of friends and family members as intelligence operatives and misusing police funds to buy luxury cars). Cases still pending.

Maladministration of City Councils has reached epic proportions, brought about by bad management, lack of skills and corruption.  In an article of this nature, space simply does not allow one to elaborate on all the failed local governments under ANC rule.

Against this troublesome backdrop, I found it fascinating that South African markets continued to steam ahead (with global markets) despite the beleaguered performance of government that can justifiably be criticised at many levels and on many fronts. The reasons are, of course, that the South African financial system is (still) generally regarded as sound and the fact that more than 50% of listed companies on the Johannesburg Stock Exchange (JSE) earn their revenue offshore, while investors in Emerging Markets allow for some level of political instability and irrationality as they expect better returns for the additional risk taken, at least up to some point.

President Zuma’s ultimate blunder in December 2015, commonly referred to as “Nene-gate”, signaled such point where billions were lost in a plunging currency and falling markets – both stock and bond markets –estimated in excess of R500 billion (Hogg, March 2016). This incident and its aftermath has caused not only huge financial loss, but the reputational damage to South Africa – already restored to some degree by the subsequent appointment of Mr Pravin Gordhan.

Leaders, in all departments of Government, are required to shape the economic future of a country. This is not happening at present. In the modern ANC, the critical issues of sustainable country improvement have been left behind in an indecent race to riches. It has become a vicious circle, because uneducated people have been put in positions of power and they are maintained by the system.  Should they lose these positions, they will have no means of support.  President Zuma has surrounded himself with novices supporting his cause and collectively they are taking this once blooming economy down. In the words of  RW Johnson (2015):“… in many respects, Zuma has fulfilled the predictive vision of the rightwing whites who resisted majority rule on the grounds that it would bring authoritarianism, corruption and incompetence sufficient to ruin the country. The surprise is how quickly the ANC in power regressed to this sort of rule and, even more, how it rallied behind Zuma, defending him against criticism.”

Black economic empowerment and affirmative action have by and large been a huge failure especially in government. Poignantly, perhaps, even distressingly summarised by RW Johnson (2015): “In effect the transformation of the civil service has destroyed it.  Apart from occasional oases of expertise – usually in the treasury, central bank or tax collection [now also under threat], the civil service has been stripped not only of competent personnel but also of its institutional memory. Instead it has become a free-fire field for ‘cadre deployment’ and every kind of political and familial nepotism and cronyism. One result has been colossal expenditure on outside consultants who perform many of the tasks that civil servants should but couldn’t do. Second, the government has tried to get the private sector to do its work for it. A great deal of legislation – including everything to do with affirmative action and black economic empowerment – has been written in terms that require all manner of performance from the private sector and merely empower the minister to punish non-compliers.” Government has created a glut of jobs within the sphere of Government, which requires more people, more office space, more transportation, more uniforms … and offers less efficiency.

Skilled and experienced people were retrenched prematurely. Some of these people have been contracted as “consultants”, at more than triple the cost, while others have emigrated to apply their skills elsewhere and some have lost their retrenchment packages in investing in “franchised business opportunities”.

State owned enterprises (SOE’s) have become so badly run that they have crippled many other industries dependent on them, for instance: the IT sector which is substantially dependent on Telkom; and mines and factories on Eskom and Port and Railway services. In the interim prices have escalated beyond control, completion of capital infrastructure projects has been delayed and this has inflated the cost of such projects. Case in point the Medupi Power Station project which is running approximately 4 years behind schedule and latest budgets indicating a final cost of more than 10 times the original budget. (SouthAfrican.info August 2015). Many more of these SOE’s are still losing money and National Treasury has had to bail them out.

Read also: Counting cost of ANC Cadre Deployment Policy – SOEs losing tens of billions

Land redistribution remains high on the ANC’s agenda and, yet, most of the farms redistributed by government to African communities have failed and often the land is then either utilised for subsistence farming or turned into squatter camps. With the safety of farmers constantly under threat and little being done by government to assist in protecting them adequately, it is hardly surprising that the number of commercial farmers have shrunk from 60 938 in 1996 to 45 818 in 2002 and only 39 966 in 2007 (Johnson, 2015). It is predicted that there will only be 8 000 commercial farmers left by 2030.  After being self-sufficient for most of its existence as an independent country, and a net exporter of food, South Africa has now become a net importer of food and the trend is moving in the wrong direction. Given the current drought food prices are set to rise by 25% and more towards 2017 against the background of a net reduction in food production.

On 25 April 2013 the National Assembly approved the Protection of State Information Bill, commonly known as the “Secrecy Bill”. If it were to be signed into law, journalists and their sources may face up to 25 years imprisonment for publishing anything deemed to be state information. The voice of society, crucial in the broader interests of the public, is under real threat and may soon be controlled. The end of free speech may be upon us.

Eerily, I find similarities between the current ANC and the old Nationalist Party – both striving to protect a non-viable cause, where a small number of people are singled out for favoured treatment at the expense of the majority.

With all the doom and gloom, it is easy to overlook the positives:

A handful of people in Government are still committed to strong values and getting the job done. The basic fibre is still there.

South African business leaders are closing ranks. Prominent companies employing millions of people have begun to apply pressure on Government to change for the better.

The SARB is still demonstrating its independence with competence – a shining beacon of light indeed.

A growing number of young black professionals – unaffected by apartheid, are forward looking and eager to make the country work. They are becoming more active in, and providing a much needed impetus to, our economy.

It can be done. For example, Mercedes Benz have announced, after a worldwide assessment, that South African made Mercedes Benz sedans rate number one in quality of all models made anywhere in the world.

So, whereto from here?

The situation is complex. Trying to predict where South African politics and economics are heading is nearly impossible, but I, nevertheless, will proffer two possible scenarios:

The “best case” scenario: The short-term solution lies within the ANC.

Accept that the ANC will rule for a long time to come. Change will have to come from within the ANC. President Zuma must be withdrawn sooner rather than later and allow a new leader with integrity and ethical leadership qualities to take over, but with a 70% plus support base within the National Executive, it seems unlikely that this will happen any time soon. The other challenge here is that a clear successor has not yet emerged from the ANC’s ranks.

The only good thing that emanated from the Nene fiasco, is that it has demonstrated that there is some sanity within the ANC leadership with adequate powers to control Mr Zuma – although not removing him. Some already see this as a turning point and they no doubt will be fortified by the judgment Constitutional Court in the case between theEconomic Freedom Fighters versus Speaker of the National Assembly and Others; Democratic Alliance v Speaker of the National Assembly and Others. In this landmark judgment the Constitutional Court unanimously found that both Zuma and the National Assembly had failed to uphold the Constitution by not respecting the binding force of a report by the Public Protector, Advocate Madonsela, on security upgrades to his Nkandla home.

The opposition parties will become stronger. The DA offers a viable long-term solution and should gain more municipalities under their reign in the upcoming Municipal elections. The ANC is bound to drift away further from the desired two-thirds majority rule. This is important for the protection of our constitution.

Read also: Analysis: By-election trends suggest DA to govern Joburg, Tshwane in 2016

Unfortunately, there is no quick fix for all the damage done over the past six years. Once leadership changes from the top, operation “clean up” will have to commence in getting skilled and competent people with integrity back into the critical roles. Within this scenario there is a possibility that the ANC can transform into an ethical, efficient and respected party with integrity that decisively tackle the fight against corruption, education restoration, crime and job creation.

A new credible and ethical leader will go a long way in raising confidence levels, averting a further credit downgrade and attracting renewed interest in South Africa as an investment destination and it will no doubt assist in strengthening the Rand to realistic levels, which should, theoretically, be some 15 to 25% stronger against the US Dollar than what it is now.

Mr Pravin Gordhan is already making headway in stabilising the currency and, given a fair and reasonable opportunity, he could play a pivotal role in the road to recovery.  Growth can return to 2 and 3% per annum within the next three years. This is still way below the required 5% plus, as projected by the National Development Plan (NDP), but it is certainly better than where we have been and definitely better than another recession.

The “worst case” scenario: Change does not happen.

Zuma remains in power for his full term and manages to influence the appointment of his own successor – one that will continue in Zuma’s errant unconstitutional ways and maintain / protect all the people appointed by Zuma over the past 6 years.

The EFF keeps on growing. Although it seems unlikely that it will ever come into power, its strategy of  mass action and disruption, which serves to create false expectations is likely to continue and it is not farfetched to predict or suggest that this will only foster more tension and violence and make investors wary of South Africa as an investment destination.

Read also: Moeletsi Mbeki: Zuma won’t fall – he will serve out full term until 2019

In this scenario South Africa is destined to get further credit downgrades. Even as matters now stand, the country is on the verge of being downgraded to “junk status” which will make it more difficult for SA to borrow money and may even see a large scale selling of SA bonds lowering the value of South Africans bond investments (Bonds form an integral part of pension and provident fund portfolios). The value of our currency declines further and faster. The looting of the fiscus continues by rogue elements. More educated and skilled people leave the country.

Navigating the storms

On a personal note, my family and I have been the victims of a number of crimes, including a hijacking in which a bullet missed my wife by, literally, a few centimeters, while my daughter (then 14) was pulled out of the vehicle and made to lie on the ground next to the roadway. A few years later we were again attacked.  This time it was in the safety of our home – I was held at gunpoint, while a hunting knife was held against my son’s throat (then 13) and we were robbed. We have lost friends and acquaintances through murder. To the very best of my knowledge none of these cases has been solved. Thousands of South Africans have similar and, some worse experiences to share.

Despite this, we have decided to stay, all because we kept hoping and believing.

In fact, we still do.

If you live in South Africa by choice, like me, you may consider the following helpful hints:

1. Accept that South Africa, as part of the African continent, is and has always been an African country. South Africa is an African country – has always been, will always be. The “old South Africa” that the National Party tried to create was an artificial European bubble which merely postponed the inevitable. Embrace it.

2. Enjoy what South Africa has to offer. Unsurpassed wildlife and beautiful landscapes, beaches, cities (Cape Town is still listed as the fourth most beautiful city in the world by Conde Nast and part of the top 10 list of the most beautiful cities of the world by Forbes) great weather, good food and affordable luxuries. In my experience, most South Africans travelling abroad, generally get to visit first world cities (typically London, New York and cities in Europe and other first world countries) and/or the occasional Mediterranean or Asian island during holidays. These are unrealistic comparisons to draw, because  South Africa must be seen in the context of other emerging economies.

3. Adapt to our own peculiar set of circumstances and also be sure to invest in your and your family’s safety.Take the necessary precautions to provide your own power and water if possible. Go green (and do something good for the environment too). Crime is a reality and it may get worse before it gets better. Do not overly rely on Government to improve this situation soon. Be vigilant and use technology and private security services to your advantage.

4. Ensure internationally recognized matric certificates for your children / grandchildren. Broaden their options to be accepted at overseas universities or colleges. South Africa has a choice of excellent private schools offering top education at a fraction of the cost of private schools in the United States of America, or those in the United Kingdom and other European schools.

5. Pay attention to your health and maintain proper medical aid cover to afford proper private medical care. South Africa has some of the best hospitals and medical practitioners in the world.

6. Invest offshore. The Rand will depreciate further over time – Period.  The percentage of assets to be invested offshore will differ from investor to investor and depend on the monetary value required in providing local income and the value invested in local lifestyle assets. Get professional advice. Beware of investing in unknown offshore investments, which far too often simply prove to be or are “too good to be true”. I have come across many investors who would have been better off leaving their money in a South Africa savings account (instead of losing most or all of their investments offshore). Also, if you are an entrepreneur, never underestimate the opportunities that exist in South Africa.

7. Stay invested in quality South African property (residential and commercial). There will always be a demand for quality property in prime locations. Based on future demand from a growing population, rising inflation and foreigners (diplomats and business) property valuations should always be supported.  As a case in point, I invite readers to look further north into Africa (cities such as Kinshasa, Harare and Lagos) where a two bedroom house can easily be rented for between 2000 and 3000 US Dollars per month.

8. Keep a positive attitude and play your part in uplifting and building inter cultural relations. Be generous to those that are less privileged (regardless of race).  A few of your Rands go a long way in disadvantaged and poor communities. Avoid racism at all costs, as well as cynicism. Be respectful and tolerant.

In the final analysis…

We need to see things in perspective. It is not only about Government – at least not only the one we have now.

Global (external) factors are cyclical and those will come and go. Internal factors are however brought about by Government and damage caused due to bad governance is systemic which, as history has taught us, can take generations to repair.

Change is possible. Never underestimate the power of collective positive action.

This ship can turn and if it does, there is no place on earth I would rather be.

• John Swart BCom (UNISA) MBL (UNISA) DCom (UP) has been working as Financial Adviser / Wealth & Investment Manager for the past 27 years. He is the CEO of FIRSTGLOBAL Capital.

References:

1. Feinstein, Andrew, 2007. After the Party. Jonathan Ball Publishers, South Africa
2. Giliomee, Hermann, 2008. Die enigma van Hendrik Verwoerd: ‘n Akademikus in die politiek.. Kort. South Africa
3. Hogg, Alec, 2016. Calculating Zuma’s R 500bn #Nenegate blunder – rand depreciation excluded. BizNews.com
4. Johnson, RW, 2015.  How long will South Africa survive? The looming crisis. Jonathan Ball Publishers, South Africa
5. Kallaway, Peter, ed. 2002.  The History of Education under Apartheid, 1948-1994: The Doors of Learning and Culture shall be Opened.  Peter Lang International Academic Publishers, Switzerland
6. Malala, Justice, 2015. We have now begun our descent. How to stop South Africa losing its way. Jonathan Ball Publishers, South Africa
7. Malan, JP,  2013. The Long View. Getting beyond the drama of South Africa’s headlines. Stonebridge, South Africa
8. Matisonn, John, 2015. God, Spies and Lies. Finding South Africa’s Future through its Past. Ideas for Africa , South Africa
9. Parsons, Raymond,  2009. Zumanomics. Which way to shared prosperity in South Africa? Jacana Media, South Africa.
10. Terreblanche, Sampie, 2012. Lost in transformation. South Africa’s search for a new future since 1986.  KMM Review Publishing, South Africa

Verwoerd, explained the government’s new education policy to the South African Parliament in the following derogatory terms:

There is no space for him [the “Native”] in the European Community above certain forms of labour. For this reason it is of no avail for him to receive training which has its aim in the absorption of the European Community, where he cannot be absorbed. Until now he has been subjected to a school system which drew him away from his community and misled him by showing him the greener pastures of European Society where he is not allowed to graze.” (Kallaway, 2002)

South African journalists, like their counterparts elsewhere in the world, have an irritating fixation with the suffix “-gate” – derived from the Watergate scandal approximately forty years ago – to label anything that smacks of scandal or controversy by adding this suffix to the surname of the former Minister of Finance, Mr Nhlanhla Nene, in connection with his controversial firing and the appointment of the hitherto unknown Mr David van Rooyen as the “new” Minister.

CCT 143/15; CCT 171/15) [2016] ZACC 11 (31 March 2016).

See, among others, paragraphs [99], [103], [104] and [105] of this judgment.