South Africa`s Economic Collapse: Mafia State or Globalist De-Industrialization Policies? And why is Pres Trump attacking it?
by PD Lawton 4 January 2026
There is no country in the world as contentious as South Africa. International perception has been for many decades unreservedly black and white. It would appear South Africa cannot be viewed from outside as having any shades of grey.
Economically South Africa is on the brink of collapse. The economy has grown at an average annual rate of 1.1% for the past fifteen years.Recent figures indicate growth of 0.8 %. It is dying rather than growing. The latest figures for youth unemployment are around 63%.
Statistics for tax payers vary from 1.5 % – 2.6% of total population, diminished from 3% around 5 years ago. Fewer and fewer people are making enough income to pay tax. That is not sustainable.
If South African billionaires such as Johann Rupert did not pay for millions of school meals, a large percentage of those children would not have a daily nutritious meal.( Is that feudalism?) The activists (from the leftist leaning universities) want the billionaires’ wealth to be taken away and equally distributed. They call for wealth distribution but not wealth creation or they call for wealth creation out of wealth re-distribution all the while championing the State`s de-growth policies.
In the 1960s and 1970s South Africa had a higher standard of living. It was an economic power house despite sanctions. (By the way Britain financed the ANC while the USSR supplied the ANC with weapons.) South Africa during Apartheid was economically successful because it adhered to the principles of the Physical Economy. It had a strong State that invested in physical infrastructure, roads and railways, sanitation etc. It had food and energy security and was highly advanced in agriculture. South Africa was science and technology focused. In medicine, it was world-class. Internationally South Africa was the leader in nuclear energy and designed the Pebble- Bed Reactor. It built and self-financed the State owned nuclear power plant Koeberg in the early 1980s. It designed technology to make oil from coal. It ran a State owned international airline, SAA. The South African Defence Force was world-class. It had a strong steel industry.
NB : That is not a promotion of Apartheid by this writer
Can it be said that the ANC have destroyed South Africa economically or has South Africa been destroyed by adhering to the Western globalist socio-economic model?
It is not just South Africa.
In the 1970s Somalia had a sound economy. It was a major exporter of meat. It also produced, for export, a wide variety of goods including processed fish products (canned) and ceramic tiles. Mogadishu, the once beautiful and ancient capital, was at that time a popular holiday destination for Europeans. Since the early 1990s it has been an economic basket case. The same can be said of many States in Africa. The same can now be said of many States in the West, including Germany. The same can be said of Haiti, the world`s worst basket case which was once a highly productive and well-functioning country.
Given the pattern of globalist economic policy`s destruction, can we view South Africa`s problems through a grey lens, rather than a black and white one? Is it globalist policy enabled by an astonishingly corrupt and greedy political class that has caused this?
ANC`s fulfillment of the Globalists (City of London) socio economic policy
the socio part:
DEI (Diversity, Equity and Inclusion)
South Africa`s version is BEE ( Black Economic Empowerment) It is a post-Apartheid policy which was set up to financially empower black people. It has been amended over the years, increasing in regulations each time.
It is a de-growth policy.
It is a fact that BEE (Black Economic Empowerment) has led to increased poverty, unemployment, and inequality in South Africa. It has super enriched a well-connected Black elite. South Africa is ranked highest in the world for income disparity.
image: Prof. William Gumede outspoken critic of BEE
“Conservatively, R1 trillion has been moved between under 100 people since 1994. The same people have been empowered and re-empowered over and over,” he said.“South Africa’s BEE model has created a model of corruption because people set up companies just to get a contract.” – Source
On the 5 December 2025, the Department of Employment and Labour announced that the latest BEE legislation will require all employers to classify all employees by race. This new legislation is a replica of the original 1950 law that was the foundation of racial discrimination of the Apartheid State. The law was repealed in 1991 under Prime Minister FW De Klerk. It has now been resurrected. The ANC-led GNU government have resurrected racial laws.
“Employers must use the definition of the designated groups in the Employment Equity Act as amended, which must be read in conjunction with historical racial classification legislation such as the Population Registration Act of 1950” – Ms Ntsoaki Mamashela,Director Employment Equity at Department of Labour
Young white males are the most discriminated against under demographic quotas which restrict their demographic to 4% in most categories of employment. Businesses are not allowed to hire based on merit but on fulfilling quotas for race, gender and disability. Companies that do not comply or are too slow in compliance are heavily fined.
All South African businesses are from now on required by law to classify their staff as either white, black, Indian or coloured.
BEE, as with all Globalist ESG legislation is designed to be anti-growth
Free Speech
In May 2024 South Africa adopted the inversion of Free Speech:
“President Cyril Ramaphosa has assented to the Preventing and Combating of Hate Crimes and Hate Speech Bill which outlaws offences of hate crimes and the offence of hate speech and the prosecution of persons who commit those offences.”
This curtailment of Free Speech is being done under the guise of race-based discrimination.
South Africans do not hate each other. There is not a problem of racism in South Africa except from radicals like Julius Malema. The Hate Crimes Speech Bill is a curtailment of criticism of government. Britain and Europe suffer from the same with the Online Safety Act.
Assassinations of outspoken people
Image: DJ Warras murdered because he spoke about corruption and because South Africans loved, respected and listened to him
DJ Warras was drawing attention to the inner city decay and was outspoken about the criminals in the underworld and its connections to politicians. He was gunned down in Johannesburg 16 December 2025. DJ Warras wanted to get the inner city areas cleaned up. Johannesburg CBD is a lawless place run by criminal syndicates dealing in drugs, human trafficking, prostitution and kidnappings.
DJ Warras often spoke on various podcasts and just before he was murdered spoke with Rob Hersov on a new podcast The Truth Report which is “Just REAL South Africans saying the things everyone else is too scared to say.”
image: Vusi ‘Cat’ Matlala and former Chief of Police Bheki Cele
Businessman Vusi ‘Cat’ Matlala – accused of being hitman ‘John Wick’is called the king of the underworld and is said to have members of government in his pocket. He is alleged to be implicated in the murder of DJ Warras and is under arrest for money laundering and allegedly having former Minister of Police, Bheki Cele in his pocket. Vusi ‘Cat’ Matlala was awarded multi-million rand government tenders.
Former Minister of Police Bheki Cele is widely viewed as one of the biggest criminals.
The rapper artist AKA was murdered in 2023. He spoke about the violence and crime in the country. He was gunned down in Durban in 2023.
Police and Judicial corruption : Madlanga Commission
“It was set up after senior police officer Lt-Gen Nhlanhla Mkhwanazi alleged in July that organised crime groups had infiltrated the government.His dramatic intervention led to Police Minister Senzo Mchunu being put on special leave.Lt-Gen Mkhwanazi, who heads up the police in KwaZulu-Natal province, claimed that Mchunu had ties to crime kingpins and this was why he shut down an elite unit investigating political murders.Mchunu, a senior member of Ramaphosa’s African National Congress (ANC) and a close ally of the president, has denied any wrongdoing.” – Source
“KwaZulu-Natal Province Provincial Police Commissioner Nhlanhla Mkhwanazi claimed that criminal syndicates are corrupting law enforcement from within.He claimed that these criminal syndicates involve politicians, police officials, prosecutors, businesspeople, and even elements of the judiciary.He further alleged that Police Minister Senzo Mchunu ordered the disbandment of a critical investigative unit which had been probing politically motivated killings.Around 121 case dockets were reportedly removed in early 2025, purportedly to shield politically connected individuals.He also accused Deputy National Commissioner Shadrack Sibiya of obstructing justice by stalling investigations and hoarding crucial case files.Mkhwanazi said unqualified individuals have been placed in crucial roles within crime intelligence, compromising investigations.He argued that these placements are part of a scheme to destabilise police leadership and suppress exposure of corruption.These accusations have raised concerns that South Africa is becoming a mafia state, where the structures of government are captured and run in the interests of criminal networks.”- Source
“The discussion explores how the commission exposes deep corruption and criminal infiltration within South Africa’s justice system — from the police and intelligence services to the National Prosecuting Authority. Together, they examine how this internal decay reflects wider patterns of neocolonial manipulation, economic exploitation, and Western influence designed to keep the Global South in disorder. Bolsen and Nisa Bardien question whether the Commission represents genuine reform or political theater, highlighting how corruption in South Africa’s power structures mirrors broader global hierarchies — where financial elites and foreign actors shape outcomes behind the scenes.”– Source Middle Nation
Whistelblower Assassinations: Madlanga Commission Witness Murdered
Marius van der Merwe, known as “Witness D”was shot with an AK47 at his home in Brakpan in front of his wife. Despite being a key witness, he was not afforded any police protection.
He was shot dead after testifying about high level politicians links to illegal mining .He testified about serious allegations, including a cover-up related to a murder case. (The illegal miners are called Zama Zamas.)
Foresnsic auditors who were investigating tender corruption and service mismanagement who have been murdered just in the last 12 months :
Mpho Mafole – head of Forensic Audits, Ekurhuleni Metro. Shot while driving. Was invesigating major audits.
Simnikiwe Mapini – Auditor, Ekurhuleni Metro. Gunned down while invesigating government awarded tender
Zenzele Sithole – Forensic Investigator , Johannesburg. Killed in a drive-by shooting while investigating corruption
The De-Industrialization of South Africa
ESKOM the backbone of the South African economy
In the 1990s South Africa produced surplus electricity. For many years now Eskom, the previously State- owned power utility, has been incapable of supplying demand resulting in lengthy, regular power outages called blackouts. In terms of energy supply South Africa has regressed not progressed. The industrial capacity of a country is entirely dependent on energy generation. Eskom`s failure is the kiss of death to industry, both domestic and foreign. Investors will not invest in industry where the electricity supply is not guaranteed. Energy should be the priority for government, cheap, guaranteed twenty four hours a day, seven days a week.
How South Africa reached this sorry state of power shortage began in 1998. Globalist policy emerged mid 1990s. Prior to 1998 Eskom reinvested all profit back into itself, the State owned utility. Normal procedure incorporated future requirements. These requirements ,up to 20-30 years in advance ,were financially planned for and the money set aside. Eskom did not pay tax. It was part of the apparatus of State. In 1998 the De Villiers Commission changed the nature of Eskom and put it on to a profit and loss, tax paying business model. The basic human right to electricity and the foundation of the economy was `marketed`.
Then along came the Green New Deal which imposes Eurocentric energy policy on fossil fuel rich Africa. The `market bubble` of Net Zero seems to be imploding as the reality of renewable energy proves itself.
South Africa’s heavy industries including steel manufacturing, smelting (such as manganese, chrome and silica quartz) mining, and car manufacturing are now collapsing with the lack of reliable, cheap electricity and foreign investment. ( please see numerous articles on this website under the ESKOM tag)
Why does President Trump dislike the current South African government?
South Africa harbours every radical and terrorist group that operates on the continent. South Africa allows M23, ADF, Boko Haram, Lords Resistance Army and the rest to have offices within South Africa. The government is fully aware of their prescence.
to be continued