[Letter] SA’s reliance on external tailwinds is risky

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.

Letter originally appeared here.