For South Africans, economic pain hit long before recession
June 13, 2017
South Africa’s recession took economists by surprise, but for clothing shop owner Hans Setlhabi the gloomy numbers confirmed what he already knew – chronic unemployment and lofty inflation have shattered consumer confidence.
“I wasn’t surprised to hear about the recession. I saw that the economy was going down last year,” said 38-year old Setlhabi, staring at shelves piled high with clothes offered at discount prices. “People don’t have money and for those who come in, they buy cheaper items and not the expensive ones.”
South Africa sank into recession for the first time in eight years in the first quarter, hit by weakness in consumer sectors such as wholesale, retail and accommodation.
The economic turmoil is piling pressure on President Jacob Zuma, who faces calls to step down from within the governing African National Congress (ANC) as a string of corruption scandals, party infighting and sky-high unemployment erode public support ahead of elections in 2019.
The persistence of poverty and joblessness 23 years after the end of apartheid is also stoking anger, with unrest dubbed “service delivery protests” – taking place frequently. Unemployment is at a 14-year high of 27.7 percent.
The government’s response to the gradually building economic crisis is due to be laid out later this week when Finance Minister Malusi Gigaba briefs the media how he will address the economic challenges.
