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A weak Rand benefits me as an individual

I've been tip-toeing around this issue because it is a double-edged sword for me. A weak Rand benefits me as an individual but, unfortunately, disadvantages all the industries I'm involved in. A more objective and long-term approach would be this (bear in mind this is from my experiences more than anything else) :


1. A weak Rand affects manufacturing negatively in this country and is even worse on the exports. In the long run, this will collapse the industry, and unemployment will explode once our net imports increase beyond an inevitable point. This is not good for anyone, so we stand on shaky ground.


2. Persistent load-shedding is also incredibly bad for the economy and much worse for the manufacturing industry. Take this, for instance. In the glue and paint industry, it takes approximately 2hrs to switch all machines on and be ready for production. It takes 2hrs to switch off and clean the same machines. If you have 11 to 15hrs of load-shedding, when do you produce anything? The cost of running production off diesel is incredibly huge. So yes, load-shedding is killing our industry.


3. The sale of arms to Russia is a red herring. This coming from a country that is arming Ukraine and trying to expand the reach of NATO is a non-starter. However, we need to keep trying to please the masters; the question is, which one? We are aligned with the US through trade agreements like the AGOA but also with China and Russia through BRICS. China and Russia have already signed a pact to trade in Yuan and Oil. They have already formed a trading platform away from the swift international model. While the Dollar might rise in the short term, BRICS is already attracting other African countries, the Middle East and parts of South America. It is starring a potential danger of losing international relevance in the long term.


So yes, we need to have a plan in place to deal with the country's load-shedding and the energy crisis ( coal-generated electricity is not the only problem). We need to do that fast. But not at the behest of our oppressors but for our progress. The US will never leave South Africa; they are too highly invested through Amplats, Implats and other Anglo-American investments. They never left Zim though they sanctioned it, and they are still syphoning money out of that country. We just need to be smart in our approach.


Ngoato Thamae

Wowos Business Club Member 

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