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17 October 2014
South Africa

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Serving South Africa's population since 1994
17 October 2014

The new South African economy grows… but is it enough?

Ten years after the ANC were voted into power, the question economists are asking is, has the Government delivered on its promise to transform the South African economy? In particular, is GEAR (the Growth, Employment and Redistribution strategy) delivering the goods?

First, the good news

  • The South African economy is now the 23 rd largest in the world, compared to 35 th in 2002. It's growing at a rate of over 3% a year.
  • Inflation was running at 14% in 1994. It's now below 5% and falling.
  • Interest rates dropped from 16% to under 9% in the first ten years of the ANC Government. This is good news for businesses wanting to borrow and could mean more jobs are created.
  • The budget deficit, which was 8% in 1997, fell to 1.5% in 2004. South Africa is balancing its books.
  • 25% of goods produced in South Africa are for export, up from 10% in 1994.
  • Black South Africans are spending ten times as much on cars as they were in 1994.

Making It in the New South Africa
It’s cold and dark when Petrius Xhosa turns up for work at the Gwembeshe petrol station on the outskirts of Port Elizabeth. Every night for the last five years Petrius has reported for the night shift at ten o’clock and spends the night filling cars with petrol, checking oil and cleaning windscreens...

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