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SA’s running out of time on reforms: business lobby

The country must avoid losing its only investment-grade credit rating and having to resort to IMF bailouts.
Image: Moneyweb

South Africa must implement economic reforms urgently to avoid losing its last remaining investment-grade credit rating and having to resort to bailouts from multilateral lenders, the nation’s main business-lobby group said.

South Africa “desperately needs” policy changes to revive flagging economic growth, reduce growing unemployment and rein in government debt, Business Unity South Africa President Sipho Pityana said in a speech to a conference in Sandton on Tuesday.

Priorities include security of energy supply, the reform of state-owned enterprises and appointment of competent leaders to manage those businesses, he said.

Pityana’s comments echo those by Finance Minister Tito Mboweni last week, when he warned a credit-rating downgrade was unavoidable unless the state ramps up structural reforms.

“The minister of finance hit the nail on the head in his latest warning that we are running out of time, and we need all hands on deck to avoid a sovereign downgrade and the extreme pain that would follow bail-outs from entities like the International Monetary Fund,” Pityana said.

© 2020 Bloomberg L.P.

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Well now we know what an ANC-transformed country and economy looks like. If anyone had the wrong picture of what was meant by ‘transformation’, it should be getting clearer by now. Don’t forget also, that they are not done yet…by far. In the ANC mindset, there’s been many great successes and very few mistakes.

I know. In the business world & international organizations and investors alike refer to “economic transformation”, while the ANC reads it as “racial transformation”.

SA is in this current (skills starved & capital starved) situation as a result of policies of appointing cadres, AA/BEE to redress the wrongs of the past (while skills/experience took a back seat in positions)…and getting paid well at it, for sub-par work input.

No economy can last with such an artificial social experiment. Soon govt and SOE debt will struggle to be repaid. Phoof….”game over”.

Hmmmm…perhaps our state employees will continue their diligent hard work without salaries. They have human capital of high quality, bar none! 😉

The only policy they have to change is Socialism.

Without changing that you can prioritise and give everything a nice fancy nam but nothing will come to anything if Socialism is not abandoned.

So don’t wast your time and breath.

End of comments.

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