---
title: South Africa's current political unrest may cause problems down the line
description: While it is true that confidence in the South African property market has always been affected by global economic trends, the loca...
---

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# South Africa's current political unrest may cause problems down the line

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While it is true that confidence in the South African property market has always been affected by global economic trends, the local political scenario usually proves to be far more influential, says Tony Clarke, Managing Director of the Rawson Property Group — and this, he said, is especially evident when South Africa enters its annual mid-year ‘strike season’, as it is doing now.

“Since 2009, we have seen a slight increase in sales and property values, but it is now absolutely clear that this will be jeopardized seriously if South Africa’s growing reputation for being politically unstable is not dealt with.”

“Guptagate” and many similar unfortunate incidences, as well as the on-going allegations of corruption, have elicited either inadequate or no response at all from those governing the country.

“This lack of will to deal with incidents harmful to South Africa’s image is, in the experience of those managing big property groups in South Africa, very damaging to investor confidence,” said Clarke. “It has, I believe, been a prime reason behind the recent big sell-off by overseas buyers of South African government bonds and it is also behind the current lack of enthusiasm for investing in potentially profitable, big new South African property ventures.”

In the circumstances, said Clarke, it is encouraging that a strong opposition is evolving in South Africa. However, he added, real belief in South Africa’s future will continue to wane unless President Zuma gives an absolute assurance that South Africa accepts that only by fostering free enterprise can the country’s economic growth rate be improved and that those with the ability to disrupt production lines and production flow will be ‘contained’ in future.

##### For more information, email [marketing@rawsonproperties.com](mailto:marketing@rawsonproperties.com) or visit [www.rawson.co.za](https://www.rawson.co.za/) for the latest market tips and industry news.

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