JOHANNESBURG, Dec. 30 (Xinhua) -- The year 2019 was a year of mixed fortunes for South Africa. The country successfully hosted its sixth democratic elections and a second investment conference that aimed to revive stagnant economic growth. But a spate of attacks on migrant communities and struggling state-owned entities pose big challenges to the Africa's major economy.
President Cyril Ramaphosa has used the year to declare war on corruption that was rife under his predecessor.
Critics and scholars say more bold and concrete steps must be taken in 2020. "We didn't see enough bold moves in 2019. We hope the country will act with more authority in 2020," said Jannie Rossouw, professor at the University of the Witwatersrand, Johannesburg.
POLITICS ACHIEVEMENTS
South Africa managed to successfully hold its national general elections in May and assumed a seat as a non-permanent member of the United Nations Security Council in January.
The ongoing state capture inquiry has also been commended for continuing to question politicians on allegations of malfeasance that occurred under former president Jacob Zuma's administration.
Jacob Zuma made his first appearance before the state capture commission of inquiry in July and testified. The inquiry stems from allegations of improper relations between Zuma and the infamous Gupta family. The Gupta family which has close ties to Zuma has been accused of influencing cabinet appointments under the Zuma administration. The graft trial against Zuma is expected to go ahead in 2020.
In September, Ramaphosa also appointed a team of special envoys to visit some African countries and to apologize for the attacks directed at foreign nationals mainly in Gauteng Province. The president said this initiative was about repairing the damaged relations between South Africa and African nations.
STAGNANT ECONOMY
After South Africa's gross domestic product (GDP) grew by 0.8 percent in 2018, there was optimism that it would be above 1.5 percent this year.
However, with the economy being stagnant, the growth is projected to be at 0.5 percent. The GDP declined by 3.2 percent in the first quarter and contracted by 0.6 percent in the third quarter of 2019.
Amid the sluggish economy, Ramaphosa hosted the second South African Investment Conference, having raised over 20 billion U.S. dollars in investment pledges. The investment conference was part of the government's plan to generate more jobs and revitalize the ailing economy.
After more than a decade of providing billions in bailouts to the South African Airways (SAA), in September the government said the entity would be placed under business rescue.
"It has to be one of the highlights, a major development after years of this company surviving on bailouts and not making profits," Rossouw said.
Meanwhile, with the new leadership at stated-owned power utility Eskom, Rossouw said South Africans are looking forward to seeing how issues such as load shedding which affects the economy would be dealt with.
TOUGH DECISION TO MAKE
All eyes will be on the 2020 budget speech which Finance Minister Tito Mboweni is set to deliver in February. This budget speech will shed light on the direction South Africa would be taking on how the government would reduce its huge salary bill and deal with its SOEs and rising debt.
In September, Mboweni conceded South Africa's debt was at 200 billion dollars, which are projected to rise further in the coming years.
Rating agencies specifically said they would be keeping tabs on the budget.
Rossouw said the National Treasury must take tough decision when it comes to SOEs and set realistic growth projections. "We cannot continue throwing money at non-essential SOEs," he added.
