The EFF may have dented investor confidence by embarking on a national shutdown this week. [Picture: EWN]
While protesters desisted from going on a rampage during Monday’s ‘national shutdown’, investor confidence might have taken a knock. That is according to one of the country’s foremost economists.
Earlier this week, the Economic Freedom Fighters (EFF) mobilised thousands across the country to demonstrate against loadshedding and President Cyril Ramaphosa’s administration. The sporadic protests – dubbed by the far left party as a national shutdown – led to the arrest of nearly 600 people for public violence.
Speaking in an interview on Salaamedia, Dawie Roodt said it was unlikely that the EFF’s shutdown caused direct losses to the economy. He explained this was because many South Africans would have taken a long weekend anyway, since Tuesday was a public holiday.
“From an economic point of view, many people actually took a long weekend [and] they would have taken a long weekend in any event. I don’t think it really had an impact on the economy,” he said.
Roodt added that South African businesses, battered by Covid-19 lockdowns and severe bouts of loadshedding, were resilient. He believed “most businesses put plans in place to catch up on some lost productivity” and therefore did not suspect “it had much impact on the economy”.
SMread: Robertsham residents struggling with month-long water shortage
Investor confidence
The problem, suggested Roodt, was the impact the shutdown may have had on investor confidence.
“South Africa is not seen as a very attractive investment destination and whenever we do something like we did yesterday [Monday], or threaten to do things like closing down the country, we cement the view that South Africa is indeed not a nice place to do business in.”
Furthermore, he said there was “tension” that continuously threatened to plunge the country into chaos. This would go far in dissuading investors from setting up shop in the country.
“The reality is that we have social tension in South Africa. We have very high levels of unemployment and poverty and other things like the looming election and rising food prices. What I’m concerned about is that a small match somewhere can put the whole thing ablaze. Even a small match like Julius Malema can get the whole thing started.”
Roodt said it was important for political leaders to be aware of the risk and take steps to mitigate it.
“Our political leaders – all of them – must be aware that South Africa is a dangerous place. Something can potentially go wrong and that can really get out of hand.”
SMread: Charges are all drummed up, says Laudium councillor
‘Successful’ shutdown
EFF leader Julius Malema led a throng of some 2000 supporters through the tree-lined streets of the capital Pretoria. The crowd chanted slogans calling for Ramaphosa’s removal as they weaved their way from Church Square to Mahlamba Ndlopfu, the official residence of the president.
The Pretoria group was among thousands more who took to the streets in sporadic protests around the country. They dodged Police until they eventually arrived outside the presidential residence, where their commander in chief addressed them.
“Today, on my way here, they [Eskom] said they are cancelling load shedding for today because there is no demand for electricity, because the factories are closed,” Malema told the crowd.
“Today, there is no big mall or small mall, no factory, no school that is open today. All of them are closed. What makes matters worse, in Richards Bay, there is no single train that was seen. Today South Africa is shut down.”
The red berets had vowed to bring the country to a standstill when their members and supporters flooded the streets on Monday. Many businesses were concerned about the potential for looting and vandalism, as had occurred during the July 2021 unrest.
However, Monday’s activities were largely peaceful and efficiently policed. South Africans noted heightened police visibility – something cherished in a country with spiralling crime rates. The army was also deployed to protect national key points.
While Malema declared the day’s events a successful shutdown, the government and civil society organisations said this was not the case. Minister in the Presidency, Khumbudzo Ntshaveni, said they failed to achieve a “Sri Lanka moment” – an allusion to deadly protests in that country that saw angry mobs breach the presidential home in early 2022.
