As
we
head
into
the
second
quarter
of
2025,
South
Africa’s
future
looks
particularly
precarious,
unfortunately.
The
Johannesburg
Stock
Exchange
(JSE)
suffered
a
severe
blow
last
week,
with
the
All-Share
Index
dropping
4.5%
in
a
single
day,
erasing
nearly
R1
trillion
–
a
loss
equivalent
to
almost
half
of
South
Africa’s
annual
budget.
This
market
turmoil
reflects
deepening
investor
anxiety
over
the
country’s
economic
and
political
trajectory,
sparked
by the
failure
of the
governing
coalition
– a
fragile
alliance
between
the ANC
and DA –
to pass
the
national
budget.
This
rift,
compounded
by
deteriorating
US-South
Africa
trade
relations
and
foreign
policy
tensions,
has
tanked
the
rand
and
signalled
deep
fractures
within
the
coalition.
Broader
concerns
about
corruption,
economic
stagnation,
and
governance
dysfunction
have
intensified
the
crisis.
The
DA’s
decision
–
understandable
- to
draw
a
line
on
the
budget
may
also
have
irreparably
strained
the
coalition,
which
raises
some
uncomfortable
potential
scenarios.
To
read
more
of
my
analysis
of
this
concerning
situation,
click
here.
Zimbabwe,
meanwhile,
continues
to
struggle
with its
own
quagmire
of
political
instability,
financial
mismanagement,
and lack
of
service
delivery,
which
has seen
no
respite
despite
legislation
promoting
decentralisation.
Real
devolution
of power
remains
elusive,
with
local
councils
like
Harare
heavily
reliant
on
limited
own-source
revenues
amid
minimal
national
fiscal
transfers.
This
important
piece
of
analysis
by GGA
researcher
Nnaemeka
Ohamadike
and
urban
development
expert,
Ian
Palmer,
looks
closely
at
the
problem,
and
possible
solutions.
On
the
global
front,
European
countries'
ongoing
support
for
Ukraine,
underscoring
the
growing
rift
between
the
US
and
Europe,
is
still
in
the
headlines.
British
Prime
Minister
Keir
Starmer
recently
said
any
peace
deal
between
Russia
and
Ukraine
“must
be
backed
by
strength”,
meaning
Europe
must
throw
its
full
military
weight
behind
Ukraine.
