South Africa's economy loses yet again - This time to a political unstable counterpart
The International Monetary Fund reports that South Africa is now Africa's third largest economy. Egypt has knocked us off our second place position.
South Africa's economy has been steadily declining since 2012. The South African currency weakened from an average of 8.20 rand to $1 in 2012, to 12.74 rand to $1 in 2015—a depreciation of more than 50%.
South Africa has barely managed to deal with the blow when it lost first place to Nigeria two years ago, not it has to deal with yet another demotion.
KPMG's chief economist, Lullu Krugel says, “Psychologically, I do think this is a blow. We've always thought of ourselves as the powerhouse of Africa, and then we're number two and now we're pushed to number three.”
We’re losing all hope of returning to first place
The weaker rand, ailing economy and mismanaged funds are major contributors to the countries fall from power. As long as the government continues to make brash decisions without proper consultation, South Africa will struggle to recover its losses.
We’re losing to nations marred by political and terrorist violence
Look at the timeline of Egypt’s political problems since 2014 taken from the BBC.com
2014 – Sinai-based armed group Ansar Beit al-Maqdis pledges allegiance to extreme Islamic State movement, which controls parts of Syria and Iraq. Renames itself Sinai Province.
2015 – In February Egyptian aircraft bomb Islamic State positions in eastern Libya after extremist group released video apparently showing killing of 21 Egyptian Coptic Christians. Egypt seeks UN mandate to sanction international intervention in Libya.
2015 May – Ousted President Morsi sentenced to death over 2011 mass breakout of Muslim Brotherhood prisoners, along with more than 100 others. He was sentenced to 20 years in prison in April over arrest and torture of protesters during his 2012-2013 rule.
2015 June – Prosecutor-General Hisham Barakat and three members of the public killed in suspected Islamist car bombing in Cairo.
2015 July – Islamic State launches wave of attacks in North Sinai.
2015 October - Islamic State claims responsibility for destruction of Russian airliner in Sinai, in which all crew and 224 tourist passengers were killed.
2016 January - Islamic State carries out attack at Giza tourist site and is suspected of attack on tourists in Hurghada.
Despite all the political unrest and increased violence, the Egyptians managed to beat South Africa. I’d personally like to hear how our president plans to justify this economic blow.