Rob Hersov: South Africa is uninvestable under the ANC

Key topics:ANC misrule blamed for economic collapse and corruptionLoadshedding, unemployment, and debt crisis deepen povertyDiversify wealth into gold, Bitcoin, tech, tourism, property.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Rob Hersov*.Dear fellow South Africans, and anyone still foolish enough to believe in the ANC's promises,I stand before you today not as a pessimist, but as a realist. Not as someone who hates this country, but as someone who loves it too much to watch it burn in silence. And burn it is, under thirty years of ANC misrule that has transformed what was once Africa's economic powerhouse into a cautionary tale of how quickly a nation can destroy itself.The title of my speech today is not hyperbole. It is not political rhetoric. It is a cold, hard fact backed by three decades of devastating evidence: South Africa is uninvestable under the ANC.And if you're still putting your money into this economy under their leadership, you're not investing – you're gambling with your family's future.Let me be crystal clear from the outset. This is not about race. This is not about the past. This is about competence, accountability, and results. And on every single metric that matters – economic growth, job creation, infrastructure, safety, governance – the ANC has failed spectacularly. The ANC have taken a country that was handed to them as a functioning, First World economy and systematically destroyed it through corruption, incompetence, and ideological blindness.The numbers don't lie, even when politicians do. Since 2008, South Africa's GDP has grown by an average of just 1.3 percent per year.That's slower than our population growth of 1.4 percent. Think about what that means: we are literally getting poorer every single year.Our economy is shrinking per capita while the ANC leadership gets richer and the rest of us get poorer.In 2024, our GDP growth was a pathetic 0.58 percent. Some quarters showed contraction. This is not a developing economy – this is a dying economy. And the patient is on life support while the doctors are looting the medicine cabinet..Read more:.Worldview: Rob Hersov slams ANC’s ‘Marxist kleptocracy,’ urges US to pressure SA on genocide risks and economic collapse. Let's talk about corruption, because that's where this story really begins. The ANC didn't just fail to prevent corruption – they institutionalized it. They turned it into a business model. State capture wasn't an accident; it was the plan.The numbers are staggering. Conservative estimates put the cost of state capture at R1.5 trillion – that's roughly 100 billion US dollars stolen from the South African people over just four years. Other estimates go as high as $500 billion. To put that in perspective, that's more than our entire annual national budget. That's money that should have built schools, hospitals, roads, and power stations. Instead, the ANC elites built mansions in Dubai and Swiss bank accounts.Our corruption perception index score is 41 out of 100. We rank 82nd out of 180 countries. We're below the global average and stuck in the same category as countries emerging from civil wars. This is what thirty years of ANC governance has achieved – we've become a byword for corruption on the international stage. The new Nigeria. And what has President Ramaphosa done about it? He gave us a confession. In his own words: "For a decade, individuals at the highest levels of the state conspired with private individuals to take over and re-purpose state-owned companies, law enforcement agencies and other public institutions. Billions of rands that were meant to meet the needs of ordinary South Africans were stolen."A decade! He admits they allowed this to happen for a decade while he was deputy president. And now he wants us to trust him to fix it?That's like asking the arsonist to put out the fire he started.But corruption is just the beginning. Let's talk about loadshedding – the ANC's gift that keeps on taking. This isn't just an inconvenience.It's economic sabotage on a national scale.Loadshedding costs our economy up to R899 million every single day. That's not a typo – nearly a billion rand per day. In 2023 alone, we lost 650,000 jobs directly because of power cuts. That's more than half a million families thrown into poverty because the ANC couldn't keep the lights on. And if you assume five dependants per breadwinner that is 3 million more mouths to feed. The agricultural sector has lost R12 billion since 2022 due to food processing delays. Pick n Pay alone lost R200 million in 2023 from spoiled inventory. Mining, the backbone of our economy, operates at just 60 percent capacity during severe outages. We're literally mining at Third World levels in what should be a First World economy.And the human cost? Crime spikes by 15 percent during outages because criminals know the streetlights are off and security systems are down. Students in townships can't study at night, leading to a 22 percent decline in matric pass rates in areas with frequent outages. We're not just destroying our economy; we're destroying our children's futures.Over 30 percent of small businesses don't have backup power. When the lights go out, they close their doors. When they close their doors, people lose jobs. When people lose jobs, they can't feed their families. This is the ANC's economic policy in action – systematic destruction disguised as governance.The ANC promised jobs. What they delivered was the highest unemployment rate in the world. Our official unemployment rate is 32.9 percent. Youth unemployment is 44.6 percent. Nearly half of our young people have no hope of finding work. This isn't just a statistic – it's a national emergency that the ANC has normalized.But here's what they don't tell you: only 12 percent of South Africans actually pay income tax. Think about that. In a country of 60 million people, only about 7 million are working and earning enough to pay tax. The rest are either unemployed, underemployed, or working in the informal economy. Meanwhile, 62 percent of the black population receives state grants. We've become a welfare state funded by a shrinking tax base.This is not sustainable. This is not an economy. This is a Ponzi scheme where fewer and fewer people are supporting more and more people, while the ANC elite skim off the top.And what's the ANC's solution? More of the same. More BEE policies that create jobs for the connected few while destroying opportunities for the many. More cadre deployment that puts party loyalty ahead of competence. More regulations that strangle small businesses before they can grow.Let's talk about debt death spiral because this is where the ANC's economic vandalism becomes truly criminal. Since 2008, our debt-to-GDP ratio has tripled – from 24 percent to 75 percent. We now spend 20 percent of all government revenue just servicing our debt. That's the same amount we spend on health and policing combined.Think about what that means. For every rand the government collects in taxes, 20 cents goes straight to paying interest on money they've already spent. Money that was supposed to build infrastructure, create jobs, and improve services. Instead, it's gone – stolen, wasted, or spent on keeping the ANC's patronage network happy.We're borrowing money to pay the interest on money we've already borrowed. This is the definition of a debt spiral, and the ANC is driving us deeper into it every single day. Our economic decline index is 8.2 out of 10 – and it's getting worse, not better.The ANC has built what they call a "developmental state." What they've actually built is a patronage state that repeatedly gives civil servants above-inflation pay rises, bails out failing state-owned enterprises, and steals vast sums through corruption. They've turned government into a feeding trough for the connected elite while the rest of the country starves.The world has noticed. Foreign investors aren't stupid – they can read the same statistics I'm sharing with you today. They see a country where the lights don't work, the trains don't run, the ports don't function, and the government can't be trusted with a rand, let alone billions in investment.Foreign direct investment has collapsed. The mining sector, which should be our golden goose, operates at 60 percent capacity because investors know their operations will be interrupted by power cuts, strikes, and regulatory uncertainty. Tourism, which contributes 3.7 percent to GDP, is haemorrhaging money as 40 percent of hospitality businesses have been forced to invest in diesel generators instead of improving customer experiences.And we are experiencing an investment exodus.Nearly one-fifth of the white population that was here in 1994 has emigrated, taking their skills, their capital, and their tax contributions with them. Which of your children have left or are living overseas? My two oldest sons are gone.This brain drain has created skills shortages that the ANC tries to solve with more regulations and more cadre deployment. It'slike trying to fix a leaking roof by hiring more people to hold buckets.So Where Do You Put Your Money?Now, you might be asking: "Rob, if South Africa is uninvestable under the ANC, where should I put my money?" That's the right question, and I have clear answers for you.The key is to think beyond the ANC's reach. Think beyond their ability to regulate, tax, or steal. Think global, think digital, think assets they can't touch and sectors they can't destroy.First, gold- the Ultimate Safe Haven. South Africa may be destroying its economy, but it's still sitting on some of the world's largest gold reserves. The irony is delicious – the ANC can't manage the economy, but even with that moron and commie Gwede Mantashe at Minister of Mining, they can't destroy the gold in the ground.Gold exports generated $6.8 billion in 2024, representing 14 percent of our total mineral exports. While the ANC destroys the rand, gold holds its value. While the ANC prints money to fund their patronage networks, gold maintains purchasing power. While they create uncertainty, gold provides stability.I recommend allocating 5 to 10 percent of your portfolio to physical gold. Not gold mining shares that can be destroyed by strikes and regulations, but actual gold that you can hold, store, and control. The Krugerrand remains one of the world's most trusted gold coins, and it's one of the few things South Africa still does right.Gold has hit new highs in 2024, and again in 2025, and with global uncertainty rising and currencies being debased worldwide, it's going higher. The ANC may destroy the rand, but they can't destroy gold's 5,000-year track record as a store of value.Second, Bitcoin. The Digital Gold for the Digital Age. This is where it gets interesting. South Africa has one of the highest cryptocurrency ownership rates in the world, per capita, alongside Nigeria. Why? Because people are desperate to get their money out of the reach of incompetent governments.Bitcoin is digital gold, but better. It's portable, divisible, and impossible for governments to confiscate or inflate away. The ANC can't print more Bitcoin. They can't steal it from state-owned enterprises. They can't use it to fund cadre deployment.And the regulatory environment is actually improving.The Financial Sector Conduct Authority granted licenses to 248 cryptocurrency firms in 2024 and more again this year. Major institutions like Sygnia have launched regulated Bitcoin investment products. AltVest this week became the African Bitcoin Corporation.Even Microsoft is investing R 5.4 billion in South Africa's digital infrastructure.South Africans are already spending $112,000 monthly in crypto for everyday items. They're using Bitcoin to preserve wealth, make payments, and escape the rand's inevitable decline. Smart money is already moving – the question is whether you'll join them or get left behind.Third, technology and artificial intelligence. The Future is Digital!While the ANC destroys the old economy, the new economy is being built by entrepreneurs who don't need their permission or their infrastructure.Africa's tech sector raised $30 billion by 2025. These are companies that can operate from anywhere, serve global markets, and don't depend on Eskom keeping the lights on.The beauty of tech investment is that it's location-independent.A software company in Cape Town can serve clients in New York, London, or Singapore. An AI startup can process data in the cloud without worrying about loadshedding. These businesses are building the future while the ANC is stuck in the past.Microsoft's R 5.4 billion investment shows that global tech giants see the potential. They're not investing in the ANC's vision – they're investing despite it. They're betting on South African talent and innovation, not South African government competence. Or lack thereof. Fourth, tourism – we have World-Class Destinations, and a Third-World Government.But you have to be smart about it. South Africa has world-class destinations that no amount of ANC incompetence can destroy. Table Mountain doesn't care about loadshedding. The Big Five don't worry about corruption. The Cape Winelands don't depend on government efficiency.Tourism contributes 3.7 percent to GDP, and it could be much more if we had competent leadership. The challenge is that 40 percent of hospitality businesses have been forced to invest in diesel generators instead of customer experience improvements. They're spending money on backup power instead of marketing and service.But here's the opportunity: tourism businesses that can operate independently of government infrastructure are thriving. Private game reserves with their own power generation. Boutique hotels with solar systems. Wine estates that are energy self-sufficient. These businesses are succeeding not because of the ANC, but in spite of them.The key is to invest in tourism assets that don't depend on government services. Properties with their own power, water, and security.Businesses that can operate when the state fails – which is most of the time.Finally, Western Cape property- the Safe Haven Province.This is where the data becomes really interesting. While the national property market grew by 5.2 percent in the year to January 2025, Western Cape properties surged ahead with 8.7 percent growth. The province has emerged as a hotspot for investment buyers, with 34 percent of all bond applications in the final quarter of 2024 being for investment properties.Why? Because the Western Cape works. It has the most competent provincial government in the country. It has the most reliable infrastructure. It has the lowest crime rates. It has the best schools and hospitals. Foreign buyers have increased their share from 2.9 percent to 3.7 percent between 2019 and 2024 because they recognize quality governance when they see it.The Western Cape has sustained its increased market share and entrenched itself as a major hub for investment, exceeding 30 percent of total property deal volume nationally. This isn't an accident – it's the result of competent governance creating an environment where investment can flourish.Cape Town's property market continues to defy South Africa's economic challenges because it's run by people who understand that good governance attracts investment, while bad governance destroys it. The Democratic Alliance may not be perfect, but they understand basic economics in a way that the ANC never has and never will.The choice before us is stark. You can continue to believe in the ANC's promises, continue to invest in their vision of South Africa, continue to hope that somehow, magically, they'll become competent after thirty years of failure. Or you can face reality.The reality is that the ANC is ideologically committed to policies that destroy wealth, discourage investment, and punish success. They believe in racial nationalism over economic rationalism. They believe in cadre deployment over competence. They believe in state control over market freedom.These are not policies that create prosperity. These are policies that create poverty, and thirty years of evidence proves it beyond any reasonable doubt.So, my advice is simple: diversify out of ANC risk. Put your money in assets they can't touch, sectors they can't destroy, and jurisdictions they can't control. Gold, Bitcoin, technology, tourism done right, and Western Cape property – these are your hedges against ANC incompetence.Don't let loyalty to a flag blind you to the facts on the ground. Don't let nostalgia for what South Africa could be, prevent you from protecting what you have. Don't let hope triumph over experience when your family's financial future is at stake.The Time for Tough Choices is now.The ANC had thirty years to prove they could govern. They had thirty years to show they could grow the economy, create jobs, and build a prosperous society. They had thirty years to demonstrate that their ideology could deliver results.They failed. Spectacularly, comprehensively, and catastrophically.They inherited a First World economy and turned it into a Third World basket case. They took a country with functioning infrastructure and broke it. They took a society with hope and filled it with despair.The definition of insanity is doing the same thing over and over again and expecting different results. Continuing to invest in South Africa under ANC leadership is not just insane – it's financial suicide.I'm not telling you to leave the country. I'm telling you to be smart about where you put your money. I'm telling you to protect your wealth from a government that has proven, beyond any shadow of a doubt, that it cannot be trusted with the economy.The ANC (and RMB’s Paul Harris) will tell you that criticism like this is unpatriotic (while Paul hides in his security-gated enclave)They'll say I am talking down the country. They'll play the race card because they have no other cards left to play.But the real unpatriotic act is destroying a country's economy through corruption and incompetence. The real racism is implementing policies that keep millions of black South Africans unemployed and poor. The real betrayal is stealing money meant for schools, hospitals, and infrastructure.I love this country too much to lie about its condition. I care about its people too much to pretend that the ANC's failures are somehow successes. I respect your intelligence too much to ask you to ignore the evidence of your own eyes.South Africa can be great again. It has the resources, the people, and the potential. But it will never be great under the ANC. Their ideology is incompatible with prosperity. Their methods are incompatible with growth. Their values are incompatible with success.So, make the tough choice. Protect your wealth. Diversify your investments. Put your money where it can grow, not where it can be stolen or destroyed.Invest in gold that holds its value when currencies collapse. Invest in Bitcoin that governments can't debase. Invest in technology that doesn't need government permission to succeed. .Read more:.FT: Full reservoirs, empty taps – SA’s water crisis deepens.Invest in tourism that showcases our natural beauty despite government incompetence.Invest in Western Cape property where good governance still exists.The ANC has made South Africa uninvestable. Don't let them make you poor too.The choice is yours. Choose wisely. Choose based on facts, not feelings. Choose based on evidence, not emotion. Choose based on thirty years of ANC failure, not thirty seconds of ANC promises.Your financial future depends on it. Your family's security depends on it. Your children's opportunities depend on it.Don't let the ANC destroy your wealth the way they've destroyed our economy.State proof yourself.And….repeat after me….. Voetsek ANC!.*Rob Hersov, South African businessman and patriot

Rob Hersov: South Africa is uninvestable under the ANC

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