This inevitably means that, when a party such as the ANC is in charge of state organs and tools, the default will be toward policies that increase centralisation, taxation, and power maximisation – all of which have wrought havoc on the economy, with a record-high unemployment rate and lower foreign direct investment flows as the prime examples.
This means the country's fiscus will be more fragile in future.
South African think tank, the Centre for Risk Analysis (CRA) hosted a discussion this week about the viability of the government’s National Health Insurance scheme, which it says is moving full steam ahead, despite concerns raised by stakeholders in the private and public healthcare space.
Basic Income Grant (BIG) – added to the increasing number of other forms of welfare – represents a major risk to South Africa’s fiscal responsibility and growth prospects.
Simply discussing the possibility of nationalisation sends a signal to SA and international companies and investors that the institution may lose all credibility
In the context of rising food and fuel prices, an official unemployment rate of 34%, and growth-depressing factors such as blockades of the N3 and persistent rolling blackouts, South Africa faces the prospect of more social unrest and instability over coming months.
Inflation is likely to remain high given that there is little prospect that substantive structural reforms in both the policy and administered price areas will be implemented any time soon (“SA consumers at ‘tipping point’ as food inflation soars, says NielsenIQ”, July 27).
How can businesses assist in South Africa’s economic recovery when a growing number of the country’s municipalities are unable to perform their most basic functions?