THE NEW SOUTH AFRICA: PROBLEMS AND OPPORTUNITIES

In the immediate aftermath of democratic transition, this article assesses South Africa’s dual challenge: dismantling the legacies of apartheid while sustaining investor confidence and social peace. It reviews the design of inclusive political institutions, the Truth and Reconciliation Commission’s promise and limits, and the calculus behind macroeconomic choices on inflation, exchange rates and debt management. The paper examines urgent social priorities—housing, electricity, health and education—and the risks of expectations outpacing administrative capacity. It argues that credible delivery, fair competition policy and black economic empowerment anchored in skills development are essential for legitimacy. Regionally, it evaluates South Africa’s responsibilities within SADC and opportunities to anchor supply chains and infrastructure that benefit neighbors as well as domestic industry.

The body first reconstructs the political settlement: constitutional guarantees, provincial powers and the protection of rights that underpin confidence while widening participation. Section One analyzes fiscal space, revenue administration and the sequencing of social spending to maximize jobs and service uptime. Section Two addresses industrial policy: competition enforcement against cartels, SME finance, export promotion, and the modernization of logistics—ports, rail and power—to reduce cost premiums. Section Three explores the justice and reconciliation agenda, discussing incentives for truth-telling, victim support, and institutional reforms in policing and courts. Section Four turns to regional economics, mapping corridors to Botswana, Mozambique and Namibia and the mutual gains from harmonized standards and power pools. The conclusion emphasizes delivery discipline—public reporting, open contracting and maintenance budgets—and the social compact of unions, business and government to navigate short-term pains for long-term inclusion.