Are we heading for another Great Depression?

The COVID-19 pandemic, the Russia-Ukraine war, and a corrupt government have combined to put South Africa's economy under the lash. Peter Hughes considers whether we'll see a rerun of the 1930s and 1940s.

- Peter Hughes

To paraphrase the title of a recent Politicsweb article, South Africa has "no need for foreign invaders", with employees from state-owned enterprises "willing to take the country down". It got me thinking.

Times are certainly very tough for many businesses in South Africa, and farmers are no exception. But surely what we're going through is not comparable to the impact of the Great Depression of 1929 to 1939, followed by the Second World War (1939-1945), as some have said?

Yet the more I think about it, the more I realize the parallels between the current situation and that period.

Let's take stock:

• Fruit exporters are short of containers and shipping, and costs have gone through the roof; some imports have likewise been affected.

• The costs of certain critical items, basic foods, fertiliser, and fuel have become exorbitant, even prohibitive for some.

• Inflation and interest rates have surged worldwide.

• Uncertainty and insecurity have increased the volatility of currency values.

• With crime rates at all-time highs, confidence in the police and army to protect South Africa's residents has reached an all-time low.

• Road, rail and air transport systems have deteriorated to a point where some services have ceased completely.