The South African economy is 'in crisis' says the country's finance minister Pravin Gordhan.
The comments came ahead of his Budget speech, in which he cut the country's growth forecast for 2016 to 0.9%, down from 1.7%.
He conceded the economy was struggling with shrinking growth, 25% unemployment, and widespread poverty.
The South African currency, the rand, which has halved over the past five years, fell after the speech.
It dropped 2.25% to make one rand worth around $0.0639.
In a briefing ahead of the Budget, Mr Gordhan said: "There is no doubt about the fact that we are in crisis."
The measures announced in Parliament were aimed at stopping the country falling into recession and to appease the rating agencies who have threatened to downgrade South Africa to junk status, which would raise borrowing costs for the country.
Mr Gordhan unveiled government spending cuts, a civil service job freeze and some moderate tax rises.
These tax increases affect property sales, fuel, sugary drinks, alcohol, tobacco and and capital gains, as well as environmental levies, which are expected to bring in an extra 18bn rand ($1.18bn; £840m).
He had been expected to announce plans on privatising state assets - he fell short of that but said the government was looking at the possibility of merging the loss-making national carrier, South African Airways, with the state-owned SA Express airline "with a view to engaging with a potential minority equity partner".
Privatisation has long been resisted by sections of the ruling African National Congress.

http://www.bbc.co.uk/news/business-35650701

seems not only Nigerian economy is feeling the heat.
And their president is not Bubu

Nja don infect them

When Nigeria sweats, other Africa nations boils

Nah waoh.

some people be like blame PMB

The thing about South Africa is that because they are pretty well developed already, they can only grow their economy by investing outside, especially in Africa. They need African economies to keep up their rapid growth to help drive their economy. I think Zuma needs to travel a bit more, like Buhari. I think they need a more pro-active foreign policy, to push their interests.

South African economy has been nose diving for the past 4 /5 years now, it will eventually equal zimbabwe

Raymondenyi:
South African economy has been nose diving for the past 4 /5 years now, it will eventually equal zimbabwe

Oh please spare us that crap. Afro-pessimists have been predicting the collapse of South Africa right from the very day the ANC took over from the apartheid regime in 1994. Yet the economy has expanded - more than tripled in size, and millions of blacks have been moved out of poverty and illiteracy. Sure, they are not there yet, but they are a generally well governed nation, and should see their fortunes improve in the years ahead.

Laid2001:
seems not only Nigerian economy is feeling the heat.
And their president is not Bubu

their biggest mistake was electing zuma just d way nigerians elected bubu, sentiments. The words in every south africans mouth is that zuma has destroyed this country. I just hope that the way south africans are now saying mbeki is by far better than zuma that nigerians won't b saying GEJ is better than bubu.

Rossikk:


Oh please spare us that crap. Afro-pessimists have been predicting the collapse of South Africa right from the very day the ANC took over from the apartheid regime in 1994. Yet the economy has expanded - more than tripled in size, and millions of blacks have been moved out of poverty and illiteracy. Sure, they are not there yet, but they are a generally well governed nation, and should see their fortunes improve in the years ahead.

wake up sire, I do not engage in argument with ill exposed people...

Rossikk:
The thing about South Africa is that because they are pretty well developed already, they can only grow their economy by investing outside, especially in Africa. They need African economies to keep up their rapid growth to help drive their economy. I think Zuma needs to travel a bit more, like Buhari. I think they need a more pro-active foreign policy, to push their interests.

You are wrong. Companies don't want invest in SA because of rigid labours.

I'm not a South African, but I know Zuma is a mistake. That guy jor wrecked that country. That is what happens when you elect a person who has no formal education to govern the pride economy of sub-Sahara Africa. Funny enough, Nigeria just made the same mistake with Buhari. And he is following in Zuma's footstep.

Sometimes, I look at Africa and I jor shake my head. Look at Uganda. After all Idi Amin did to them, they allowed one idiot to win elections for the fifth time.

With Africa's three largest economies in crises, Nigeria, Egypt, and South Africa, the future is bleak for the continent.

-Lord

grandstar:


You are wrong. Companies don't want invest in SA because of rigid labours.

Companies like?

MduZA:

Companies like?

my point exactly