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As we stand at the forefront of the new year many are wondering what 2012 will hold. There have been many prophets of doom predicting a very difficult economical year around the world and the optimists seem to be few and far between.
Regardless of how the year will pan out, one thing is for sure, this will be a very important year in the South African landscape especially how the country’s economic policy unfolds. There are no public elections in Africa's biggest economy in 2012 but politics are set to dominate the headlines as the ruling African National Congress prepares for a December conference and the election of its next party leader.
The expectation seems to be for President Jacob Zuma to be re-elected as head of the former liberation movement, thereby heading for a second term in Pretoria in 2014.
However, the previous such ANC meeting in Polokwane in 2007 was a disorderly affair that ended with a successful party coup led by the unions against then-president Thabo Mbeki.
With growth half of what it was five years ago, any opposition to Zuma at the December meeting is likely to unite around his handling of the economy. Linked to this is a growing problem of corruption and mal- administration at local and provincial government levels and to some extent at national level.
Other economic issues that will definitely come into play are the mining debate in which the ANC Youth League has been very vocal over the last year. However, industrial policy, inflation rates, and broader investment could all play an important role as unemployment is stuck at 25%.
This is a complicated cocktail of interests, stakeholders and institutions and we won't try to predict how it will all play out. Instead, we invite you to submit your own thoughts on the dynamics we have outlined.
If you are looking for financial experts that will successfully help your business navigate the financial year ahead, give us a call! Communicate Personnel is a specialist financial recruitment agency that will find you the right person for the job.
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