The future looks bleak for the South African economy as President Jacob Zuma admitted the nation faces a ‘serious struggle’. The government’s original plans to cut unemployment and increase growth have been put on hold because of the global slowdown and drop-off in commodities.
It is having trouble determining how to create more jobs and, due to the fall in metal prices, many of South Africa’s mining companies are considering firing workers in order to decrease further losses. Student riots continue to be a problem and it is believed that these actions have genuinely rattled investors, perhaps contributing to the rand’s 4.3% drop against the dollar since the start of the week!
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