WORLD NEWS TOMORROW – Johannesburg- Breaking News – How much does Foreign investors lose in South Africa. Few will dare to tell the truth and most media in South Africa will report using weasel words such as, firmer rand, softer currency and instead of weaker or down when reporting currency changes on television within the country of South Africa.
The figures now available from Bloomburg dating back to 1971 paints a gloomy, but dark future for investors to South Africa. During 2002 the South African rand fell to 10.52 to the USD when the former president Thabo Mbeki announced they don’t need European investors. Now once more the South African currency has come to a similar point reaching 10.32 to the USD last week. But what few investors know, are the present condition South Africa is facing.
With an infrastructure within the medical, employment and national security on the brink of total collapse and a rape rate of one rape every 20 seconds in the country, the situation is very different from 2002 when the currency hit rock bottom.
Since 2004 there was a year on year downward spiral indicating that there is something horribly wrong in the economy of South Africa.
Since 2008 the unemployment has risen to 26% of the country making 12.5 million Black unemployed and with a population of 21.2 Million that never had proper schooling, one can just imagine how on earth can a once striving economy survive such constrains to survive the present black skys of a climate.
To make things worse, the Black empowerment BEE Bill has enforced that unschooled people gets positions that request proper education to run the info structure in the name of political correctness.
Shoul you have invested $1 million during 2004 in South Africa you should have left now little over $400 000. So much for investors who dont know the potential risk in a “Fake Economy ”
The problem now remains, will the currency recover or is this the final of the Titanic going down with its lights of ?