"South Africa’s economy is in dire straits" with no short-term fix
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In South Africa, there’s political disquiet this week along with economic discontent. The South African parliament tried and failed to oust President Jacob Zuma in a secret-ballot vote of no confidence. While the failure wasn’t a shock, the final vote was closer than it’s ever been, which has made Zuma’s critics more confident. Zuma is accused of corruption on the order of hundreds of millions of dollars and of mismanagement of the economy. The country’s unemployment rate is above 27 percent, and the sovereign debt is officially junk. While Zuma’s ouster may alleviate some of these troubles, the recovery period will be a long one.
“South’s Africa’s economy is in dire straits,” said Dr. Sean Gossel, senior finance lecturer at the University of Cape Town Graduate School of Business. “And nothing is going to change that direction in the short term.” Gossel spoke to Marketplace host Kai Ryssdal about the conditions in South Africa.
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