The year 2022 carried a plethora of positive and adverse developments in South Africa. Like any country in the world, South Africa has faced extraordinary economic hardships given the outcomes of the COVID-19 pandemic and its consequential impact on economic activity.
Moreover, the world is still facing an economic decline, which most analysts predict could last until the end of 2024. According to the World Bank, since the beginning of the year 2022, a “rapid deterioration of growth prospects coupled with rising inflation and tightening financing conditions, has ignited a debate about the possibility of a global recession—a contraction in global per capita GDP.” This demonstrates that the heightened economic pressures are not unique to South Africa, given the possibility of a global recession in 2023/24.
Repealing COVID-19 rules
One of the key milestones in South Africa’s calendar was the repealing of COVID-19 rules that required people to wear masks in public spaces, limiting the size of gatherings and also imposing stringent requirements on the country’s borders. The lifting of COVID-19 restrictions served as a catalyst for optimism as South Africans returned to life before the pandemic, thus boosting the tourism sector’s growth as travellers were able to participate in more activities including attending major events.
Pioneering a just energy future
For over 15 years, South Africa has faced an energy crisis, with planned and unplanned power outages due to an ageing infrastructure adversely impacting the economy. To mitigate this challenge, the country developed a Just Energy Transition (JET) Investment Plan, a R1.5 trillion energy transition vehicle that has been endorsed by the International Partners Group (IPG) which includes France, Germany, the United Kingdom, and the United States of America, along with the European Union. The IPG initially pledged $8.5 billion to help South Africa’s efforts in migrating from coal, towards cleaner forms of energy. U.S president, Joe Biden endorsed the JET, stating that the US welcomes “the comprehensive JET Investment Plan, and fully supports South Africa’s economy-wide energy transformation”. The U.K’s newly appointed Prime Minister, Rishi Sunak added that “South Africa’s JET Investment Plan, paves the way for a sustainable and fair transition away from coal and towards cleaner forms of energy, building the foundations for a strong green economy.”
Devastating floods
Over 11-12 April 2022, intense rains hit the eastern coast of South Africa – causing floods and landslides across the provinces of KwaZulu-Natal and the Eastern Cape. May hundreds of people died as a result of the floods, which also destroyed more than 12,000 houses and forced an estimated 40,000 people from their homes.
Meanwhile, 630 schools were affected in the KwaZulu-Natal province, impacting around 270,000 students. Overall, the rain resulted in $1.57bn damages to infrastructure.
Authorities say that the city of Durban was the most severely affected, with an estimated 450 people killed in the city. In the Port of Durban – one of the largest shipping terminals in Africa, dozens of heavy shipping containers were dislodged from storage and strewn across the Indian Ocean port during the deluge.
Corruption
Corruption has eaten away at the nation’s soul and has severely eroded the social compact between the state and the citizens. Time and again, South Africa has been pulled back from the brink by the activism and resilience of its people. According to Cyril Ramaphosa, “At times when the state has faltered, it has been civil society that has reminded us of our obligation to advance the ideals for which Madiba and generations of freedom fighters made such sacrifices.”
“Building a better South Africa requires each and every one of us to make a contribution in whatever way we can. Defending our democracy begins with individual acts, like joining a community policing forum, volunteering at a charity or a shelter, reporting crime or refusing to pay a bribe.”
“Let us evoke Madiba’s ‘new patriotism’, where South Africans are determined to work together and make our country a winning nation. We cannot leave it to others to realise the South Africa of our dreams. The future of our country in in our hands”.
South Africans, we are strong, we are courageous, we are resilient, we are resourceful. Never forget this. And never forget what a beautiful country we have, filled with beautiful people. Do not ever give up, the glass is always half full, never empty.
I wish everybody a peaceful ending to 2022 and a blessed and abundant 2023. Welcome the new year with optimism and trust. Look forward to great things. If going away, travel safely. Wherever you are, whatever you do, learn to trust in yourself and in the goodness of life, be kind to yourself and every living creature. Be grateful for all the good things in your life and for all the challenges, they are here to strengthen us in our journey through life.
I wish you peace, love and abundance. I look forward to seeing you again in 2023.
