Despite taking multiple economics courses in the past year somehow I missed that South Africa had been invited to join the BRIC nations. It wasn't until I was actually in South Africa that I happened to read it mentioned as a side-note in an Economist article online. At first I was actually a little surprised seeing how South Africa's growth has lagged the rest of Africa recently and unemployment is such an issue at around 25%.
It didn't take long in Sandton, a suburb of Johannesburg, to see signs of a country on the upswing. Besides the Aston Martin dealership, a mall to rival many of the best in the US, there is also a booming financial district and the BMW 3-Series seems to be the welcoming gift to the upper-middle class. However, that is only the tale of one South Africa.
Every time we asked for directions to Sandton we were always warned that under no condition were we to get off the N3 on the exit before Sandton, London Road. That road leads to Alexandra, an overcrowded township with inadequate housing just on the outside of Sandton. I think this photo from Reuters is an incredible example of the dichotomy. It is amazing to think how many people in Alexandra spend their lives looking at the skyline of Sandton City with the malls and BMWs, but yet never being part of that reality.
For the people in Sandton being the S in BRICS is great news, but I am not sure if that matters to those in Alexandra. We didn't visit Alexandra, but visited Soweto and Orange Farm, and from talking to the people there they had concerns about not having enough food or not being able to find a job. I will say that one of the elements that most surprised me in South Africa, other than the Aston Martin dealership and penguins, was the entrepreneurial spirit.
A prime example was in Soweto we visited an informal settlement and our guide told us the story of how they would always see the tour buses drive by and look with interest but would never come in. He decided to create a tour and he reached out to the tour companies and told them that if they brought visitors he would create and give a tour of the community and would only ask for donations. The money goes back to the community and is a great example of people realizing they can create a service that others are willing to pay for instead of just hoping for handouts. We also found people were ready and willing to watch your car, get you a taxi, or wash your windshield for a tip; any work they could find to create value and earn some money.
I hope the rising tide in South Africa starts raising more ships and not just the SS Sandton. Although the Black Economic Empowerment movement is a start, it will also require more equal education and skills development for the generation that grew up under apartheid and were deprived of anything resembling an equal education. However, based upon the determination and entrepreneurial spirit of the people I met in South Africa I am hopefully the South Africa will realize the growth potential it has and that growth will be shared by all. And just remember that it is BRICS with a capital S! (for South Africa, not Sandton.)
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