Dawie Roodt unpacks South Africa’s economy
During his recent visit to the AgriXpo 2025, Dawie Roodt shared valuable insights into South Africa's budget, economic challenges, and the political landscape.
POLOKWANE – Dawie Roodt, chief economist at the Efficient Group, has a unique way of breaking down complex economic concepts into simple terms that resonate with everyday people.
During his recent visit to the AgriXpo 2025, held at The Ranch Resort last week, he shared valuable insights into South Africa’s budget, economic challenges, and the political landscape shaping the country’s future.
Having analysed the national budget for over 40 years, Roodt highlighted the continuous adjustments made by the Treasury.
He expressed scepticism about the current budget, saying it is an “ongoing process rather than a once-off event”.
“The budget is a long-term thing. I personally do not believe in the current budget. The Treasury has a dedicated budget office where continuous refinements take place. Typically, the budget is delivered in February, followed by a medium-term budget policy statement in October.”
Roodt said the fundamental role of the government is to protect individuals and their property.
He warned that when the state fails in this duty, citizens have the right to question whether they should continue funding it.
“The state is essentially an institution that monopolises violence to protect individuals. When it no longer fulfils that role, it breaks the social pact, and people have the right to ask: should we still fund a state that doesn’t do its job?”
Addressing demographic shifts, Roodt pointed out how negative population growth in wealthy countries, such as South Korea, significantly impacts the global economy.
“As societies grow richer, child survival rates increase, and life expectancy improves. Eventually, population growth stabilises and then declines, which has profound economic consequences. We are witnessing rapid population decline in richer nations, fundamentally changing the global landscape.”
He also touched on how artificial intelligence (AI) is reshaping industries, particularly education.
“AI can revolutionise many industries, but education stands to benefit the most. Even in poorer countries, AI-driven platforms can provide access to the best skills development in the world.”
Shifting his focus to agriculture, Roodt emphasised the importance of modernising farming operations.
“Farming is no longer a one-man show. It’s a business, and margins are shrinking. Farmers must understand the distinction between ownership and management. The best person to run the farm isn’t necessarily the oldest son, but the most capable manager. The key is not the land itself, but how you use it.”
Roodt went on to directly link the country’s economic struggles to the ruling ANC’s governance over the past 30 years. He outlined four fundamental issues with the party’s approach:
Outdated ideology: “The ANC’s ideology is stuck in the 1920s. They advocate for a socialist-style developmental state that doesn’t align with modern economic principles.”
Flawed policies: “Policies like the National Health Insurance (NHI) and expropriation are misaligned with economic growth.”
Cadre deployment: “Incompetent individuals are placed in key positions, weakening institutions.”
Corruption: “The ANC is the most destructive force South Africa has ever seen.”
Roodt outlined three key factors necessary for sustainable economic growth. He referred to protecting private property rights, ensuring individuals have the right to own property, move freely, and live securely.
“Encouraging free trade is also key – when two individuals exchange goods, both benefit. This is the only ‘free lunch’ in economics. Lastly, sound money policies should be maintained by keeping inflation low to ensure efficient resource allocation and economic stability,” he concluded.
