We are now more than four months from the day the country embarked on a strict lockdown to prepare our health sector for the peak in the Covid-19 pandemic, which we are nearing. In those early weeks, the government at a national level at least managed to get all of us working together for the common good.
At the start of this year, our most pressing demand of the state was that it rein in its widening budget deficit and cut expenditure by having a real conversation with its employees and labour unions about wage growth that has been higher than the private sector over much of the past decade.
While finance minister Tito Mboweni’s address was welcomed by markets, on the whole it failed to breathe any new confidence into our growth prospects. This is understandable given the very limited fiscal space the Treasury has to stimulate an economy that has been on its knees for the better part of the past five years.
Business Leadership SA applauds the clear commitment Finance Minister Tito Mboweni has made to fiscal discipline that will save South Africa from a debt crisis. But we urgently need more clarity and guidance on how economic growth is going to be delivered through policy reform.
Business Leadership South Africa says SAA’s current situation is a key study that can provide some guidance on what the correct resolution process should be for a bankrupt SOE.
Writing about our economy in a post Covid-19 era on a day when we lost the most South Africans in a 24-hour cycle to the pandemic seems rather presumptuous seeing that we haven’t yet reached our peak of infections. As difficult as the months ahead are set to be, we have to consider how Africa’s…
BLSA congratulates finance minister Tito Mboweni for tackling the key question facing the nation’s finances: will we continue a decline or start a process of renewal? The minister’s warning was clear – if we continue as we have, we will end up in a debt crisis that will see us lose our sovereignty to our lenders.
Finance minister Tito Mboweni’s “emergency” budget, to be presented on Wednesday, is the headline-grabbing event of the week. It’s supposed to map a way forward for how the state will help galvanise an economy bludgeoned by the effects of the lockdown since the end of March.
In recent weeks there seems to be a resurgence globally of discussions on matters relating to the nature of doing business in times of crisis. Furthermore, with many businesses under extreme strain, desperate measures seem to include much that is seemingly unethical in how they conduct their businesses.
Of all the industries that face uncertainty in this Covid-19 world, the airline industry is top of the pile. Already operating on thin margins, most air travel across the globe has been grounded over the past four months and not many will emerge from this crisis unscathed.
Congratulations on your appointment to this crucial advisory body. Your role is a critical one: many of our SOEs are financially broken and are not adequately providing the services that the economy needs to grow and create jobs.
Restructuring SA’s state-owned enterprises (SOEs) is one of the cornerstones of the state’s long-overdue commitment to structural reforms that would help alleviate pressure on a desperate fiscus and breathe some confidence into the economy.