According to reports, a draft regulation has been drawn up for the state of emergency of South Africa. This is the first regulation in 20 years, following the July 25, 1985 by former President PW Botha.
THESE ARE THE QUESTIONS WE WERE ASKED:
– What would the economic impact be on the country if a state of emergency is declared?
– Why do you think President Zuma has drafted regulations for a state of emergency after 20 years? Does this say anything about South Africa’s current economic standing?
– What could be the financial impact if a state of emergency is declared? Can you provide an estimate based on strikes, etc.
Firstly, we do not think a state of emergency would relate to economic issues but rather issues of power.
At present there is no sign of any problems which could justification a state of emergency so we must ask why the regulations are being drafted and what problems are being anticipated?
There is no sign of hostility from outside the country so we can only assume the government is concerned about internal problems, like possible consequences flowing from this month’s ANC elective conference. President’s Zuma’s grip on power is slipping and he could become a very sore loser if the power shifts to Deputy President Ramaphosa. The possibility of violence cannot be ruled out. We must ask whether a state of emergency could be used to retain power.
A state of emergency could give the President powers to detain his enemies.
Secondly it could give him the power to interfere or cut electronic communications and silence critics.
If this were to take place the effect on the economy would be devastating. Confidence would evaporate. Industries like tourism would be hard hit. That would lead to greater unemployment and social unrest.
President of the Cape Chamber