David Shapiro, director and deputy chairman at Sasfin Securities, said that the reason South Africa is looking at China and the East as economic partners is because they tolerate our incompetence and corruption.<\/p>\n
\u201cThe reason we go that way [East instead of West] is because they tolerate us. They tolerate our incompetence. They tolerate our corruption and our bad governance,\u201d said Shapiro.<\/p>\n
\u201cYou would never find Western Europe and the United States tolerating that [South Africa\u2019s incompetence and corruption],\u201d he said.<\/p>\n
\u201cThat is why we are looking towards the East \u2013 we can get away with it.”<\/p>\n
According to Shapiro we are looking at the wrong countries as partners to boost the South African economy.<\/p>\n
Last week it was announced that South Africa\u2019s Gross Domestic Product (GDP) contracted 1.3% in the second quarter of 2015 over the previous quarter.<\/p>\n
According to Elna Moolman, an economist at Macquarie Group, South Africa\u2019s economic growth is now expected to be only 1.5% this year, and nothing better next year.<\/p>\n
This slow growth, Shapiro said, can be disastrous for a country which sits with high unemployment, especially among young people.<\/p>\n
The economist\u00a0said that South Africa needs to show at least 5% growth to address the problems which the country is facing.<\/p>\n
To achieve this growth will be challenging.<\/p>\n
\u201cSouth Africa is in a structural decline rather than a cyclical decline,\u201d said Shapiro. \u201cThis raises the question whether we have the foundation and skills to make this country grow.\u201d<\/p>\n
Why President Zuma is wrong on the economy<\/a><\/strong><\/p>\n 5 ways to save South Africa\u2019s economy<\/a><\/strong><\/p>\n