Judging by the reactions on social media and some of our community role-players, there is cautious positivism regarding the resignation (announced on February 14) of the former president Jacob Zuma.
Many are positive that new leadership will usher in a time of economic revival, the end of corruption and investor confidence.
But then again, there is also the feeling that the country has suffered so much damage that it will take a long time to mend the ship that is on the verge of sinking. And while the mending process rolls forth, times will remain harsh and brutal.
By all accounts, this is going to be a very scary budget speech being delivered in Parliament. We are looking at hikes in personal tax, possibly VAT and the fuel levy.
This is because the Zuma era has left a legacy of ailing parastatals, of growing debt, a broken economy and rising unemployment. This, unfortunately, cannot be fixed overnight, and neither can the damage be undone so swiftly caused by excessive and continuous corruption.
Our former president was in office since 2009. For the past eight years, South Africans have felt the effects of some questionable decisions made by Zuma.
And yes, we are talking about our former president, because everyone in this country, and even right here in Boksburg was and continue to be affected by his reign in office.
Investor confidence since 2009 often dipped and waned, because it can be argued that charges stacked against Zuma, such as rape, racketeering and corruption deemed him an already financially risky president.
This made foreign investors hesitant. Interesting enough, it is reported that when Zuma was newly elected, only 36 per cent of South Africans were positive about him.
And then, we get to the Guptas (and we all wait to see how this house of cards will fall apart). His unhealthy relationship with the infamous Gupta family has also caused investor confidence and economic stability to take a knock.
Remember Nenegate? This was back in December 2015, when the then-Finance Minister Nhlanhla Nene was removed, and replaced with a relatively unknown David van Rooyen.
The decision came without warning, and with no justification, resulting in the rand dipping 1.39 per cent against the dollar. After the announcement, the rand continued to drop, eventually reaching R16 against the dollar, before recovering slightly.
Under Zuma’s reign, South Africa has been downgraded to junk status. This means that everything from debt and loans to investor confidence becomes more cumbersome and difficult to manage.
This is the legacy of Zuma. Therefore spare a thought for the new leadership that faces repairing a junk status economy bled dry by parastatals and which has to somehow pay for free education (the announcement also weakened the rand), hence the hike in taxes.
Except for Nenegate, and the Guptas, Zuma will be remembered for being put on trial in 2006 for rape, in a case that dismayed many South Africans. Zuma said the sex with the 31-year-old family friend was consensual and he was acquitted.
At the time he told the court he had showered to avoid contracting HIV after having unprotected sex with his HIV-positive accuser – a common but dangerous myth.
Then there is the infamous Nkandla residence in KwaZulu-Natal province. Zuma was found by the country’s graft watchdog in 2014 to have “benefited unduly” from so-called security upgrades and so he had to refund some of the money.
Lastly, there is the issue of the Arms deal. In October 2017, after a marathon legal campaign by the DA party, the Supreme Court of Appeal ruled that Zuma was liable for prosecution over almost 800 counts of corruption relating to a 1990s arms deal.
The accusations relate to a multi-billion-dollar arms deal signed in 1999, when Zuma was deputy president. He allegedly accepted bribes from international arms manufacturers to influence the choice of weaponry.
Yes, there have been many other lows as President, including the drama involving Omar al-Bashir. What else to expect from a man that places his party above the interest of the country, and has violated the Constitution.
SA, therefore, lies pretty much in ruin, beaten to a pulp, and the new leadership has to rebuilt and this will take time. It will take time to rebuilt investor confidence and the confidence of the people.
At least when Cyril Ramaphosa was elected the new ANC president at the start of this year, the rand immediately firmed by almost four against the dollar. This shows there is still some trust that can help mend this ship.
At this moment, we are holding our breath, for 2018 is without a doubt going to be another roller-coaster year. Let us just hope by December it is going to be a merrier Christmas for all, following up from a heart-warming Valentines’ Day.
