You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Fixing SA’s economic dilemma

The country’s finances are strained across the board.

President Cyril Ramaphosa said on Thursday that “we are at a moment in our history where we need to make difficult choices. Our public finances are constrained, we will hear this more clearly when finance minister Tito Mboweni announces the budget”. He was was addressing the National Assembly in his reply to issues raised by MPs during the State of the Nation Address debate. 

Sam Rolland, economist at Econometrix, talks to Classic Business Breakfast with Moneyweb about what needs to be done to turn around South Africa’s constrained economic situation. 

COMMENTS   6

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

We have no money to spend on infrastructure. It was all siphoned off to fund social grants starting in about 2003. The social assistance budget went from R12bn in 2002 (which funded basic social assistance for the elderly, disabled, etc.) to a sprawling ANC vote-buying scheme costing nearly R200bn in 2019.

That’s why “user pay” was introduced, to get taxpayers to pay again for stuff they’d already paid for. And what “user pay” couldn’t fund (electricity and water infrastructure) was just left to rot. It got worse – because almost no infrastructure was being built, no jobs were created, so taxation revenue took a hit of unknown proportions and more people were dumped into the social grants net instead of being lifted out of it.

And the little money that was left was blown wholesale by ANC crooks who don’t understand free-market economics, like Mokonyane at the Department of Water Affairs and many of the previous Eskom board.

So yeah…good luck finding that money to spend on infrastructure. Right now, the only money coming our way is the IMF bailout we need to stop Eskom collapsing, triggering cross-defaults and bringing down the sovereign.

Well said Rob. In the meantime the delusional has just added free tersiary education for voters which is a bottomless pit. The ANC led Africa delusion and corruption has once again economically destroyed a working country for lack of being able to do simple sums.

Sounds like you could do with a bit of tertiary education!

Whatever the other problems at the utility, the recent load-shedding was partly due to the fact that Eskom “ran out of water and diesel”. How the fudge does that happen?

CR pretends there are difficult choices – it is only difficult if he puts the party before the country.

If the ANC splits, and CR form a coalition government, that is first prize for the country.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles:
Click a Company: