Newsletter| SA’s per capital income has travelled sideways for a decade, and Eskom is the single biggest risk facing the country, says Adrian Saville. However, he believes there is potential: “If you get the economy right, business can be spectacular”
South Africa is facing a crucial year both politically and economically: The upcoming election will see the ANC attempt to consolidate gains made since President Cyril Ramaphosa’s appointment to office, while the country attempts to avoid a downgrade of its sovereign credit rating to sub-investment grade.
Economist at Nascence Advisory and Research, Xhanti Payi, said the crisis at Eskom had nothing to do with the structure of the state-owned enterprise: “The real reason we got here is because of people stealing. It has bled billions. Eskom exists to provide power, and we have to ask whether its survival is even necessary?”
Director and chief economist at Econometrix Dr Azar Jammine said the mention of strategic equity partners for state-owned enterprises in Finance Minister Tito Mboweni’s budget speech was encouraging: “ are starting to realise that they have to start doing something. The crucial work now is to set the path for faster economic growth from 2021, the potential is there.”
“I think we may be able to avoid a downgrade at the end of March, but there is a possibility of a change in outlook by Moody’s from stable to negative,” she said. Professor Tinyiko Maluleke of the Centre for the Advancement of Scholarship at the University of Pretoria added that the country’s main opposition parties could not claim to be outside of the system of patronage that afflicted South Africa’s political landscape.
However, she worried that media coverage of the EFF had “exaggerated its importance and given them a patina of respectability. They are fascist, racist and violent and anti our Constitution. We better act fast, as populism is gaining ground globally.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Breaking some bones: The plans for SA's reformationIf President Cyril Ramaphosa is going to reform the state and economy, he is going to have to make painful choices. But it seems as if he's going to play politics, and leave the implementation to Tito Mboweni and Pravin Gordhan.
Read more »
How to invest in SA’s blue-chip artMzansi's finest are increasingly sought after in the global contemporary art scene.
Read more »
Fitch on SA Budget: Eskom support has limited effect on SA's credit ratingFitch Ratings has said that additional financial support for Eskom will have a limited effect on the country's credit profile, while S&P it waiting for clarity on the details of the state's support package.
Read more »
Joburg exhibition showcases SA’s best black artistsThe artworks, which were selected from the University of Fort Hare art collection, were declared a national cultural treasure in 1998.
Read more »
Sweet deal for SA's second JSE female MD | IOL Business ReportCaptain of industry Mamongae Mahlare says she has settled well in her new role as managing director of a subsidiary of Illovo Sugar Africa.
Read more »
Rohde's sentencing puts spotlight on the severity of SA's femicide crisis | Cape ArgusJason Rohde’s sentencing for wife’s murder has prompted reactions from women’s rights group saying: 'Femicide in South Africa is more than a crisis.'
Read more »
Could India turn out to be SA’s best global partner?China and Russia are merely out to lay their hands on Africa’s resources, but the sub-continent nation seems interested in mutual development
Read more »
Rule of law: Security issues undermine SA’s global statusWorldwide, South Africa ranks 45th for both criminal and civil Justice and 31st in terms of open government, but 106th out of 126 for order and security.
Read more »