SA unrest: This crisis could be an inflection point to accelerate structural reforms, says economist

South Africa has recently been rocked by violence and civil unrest, leading many to question the country's economic future. Despite these challenges, Old Mutual Chief Economist, Johann Els, remains positive about South Africa's economic outlook. In a recent interview with CNBC Africa, Els highlighted the need for the government to accelerate structural reforms to drive sustainable economic growth. Els pointed out several factors that contribute to his optimism about the country's prospects. Firstly, he acknowledged the recent shocks to the economy caused by the events in KwaZulu-Natal and Gauteng but cautioned against making hasty decisions during times of crisis. Els emphasized the importance of looking beyond the immediate impact of the unrest and focusing on the positive policy reforms that have been implemented in South Africa. He believes that these reforms, coupled with the global economic environment and a potential acceleration of policy changes in the aftermath of the crisis, could lead to a more robust growth outlook for the country. Els expressed confidence in South Africa's ability to overcome the current challenges and achieve sustainable economic growth, particularly if the government prioritizes structural reforms and policies that support investment and business growth. He emphasized the need for faster economic growth to address key issues such as poverty, unemployment, and inequality in the country. Els suggested that the recent crisis could serve as an inflection point for the acceleration of the necessary policy reforms to drive long-term prosperity. While acknowledging the risks and uncertainties facing the economy, Els maintained a positive outlook for South Africa's GDP growth and inflation rates for 2021. He indicated a potential revision of these forecasts in light of the ongoing crisis but expressed confidence in the resilience of the economy to bounce back stronger. Els also discussed the importance of business confidence and the role of investors in supporting economic recovery. He urged business leaders to focus on the long-term potential of South Africa's structural advantages and the supportive global economic environment. Despite concerns about security and stability, Els believes that businesses will continue to invest in the country if they see signs of sustained economic growth and policy reform. While recognizing the challenges ahead, Els remains optimistic about South Africa's ability to attract investment and drive inclusive economic development in the future.