SA’s reliance on external tailwinds is risky
There is a danger that politicians will leave growth barriers unaddressed
Your article quotes economists saying that with mining companies riding the commodity price boom and reporting bumper profits, “the fiscus is poised for a tax windfall over the next two fiscal years” (“SA ‘will ride commodity boom’ for two years“, February 21).
There is a substantial risk that South African politicians, bureaucrats and policymakers will sit back and rely on external tailwinds to boost the country’s tax revenue and “growth”, leaving the long-standing legislative and policy barriers to growth unaddressed.
Vested interests in politics and business won’t be upended and South Africa will largely continue on its long-term trajectory of survival, but steady decline nonetheless.
