Wise words are not enough to fix South Africa’s economy

A reformist finance minister bumps up against political reality


Tito Mboweni and Cyril Ramaphosa face the task of saving South Africa from an economic downgrade this year

A reformist finance minister bumps up against political reality

On February 26th political gravity brought Mr Mboweni down to earth. South Africa’s public finances are in a sorry state, a result of sluggish growth and lavish state spending, especially on public-sector wages. Debt was just 27% of GDP in 2008. A decade later it was 57%, and is set to rise to 66% over the next year, warned the finance minister. But it is unlikely that his comrades were paying attention.

Then there was Eskom, a state-owned electricity utility that epitomises South Africa’s struggles. Decades of mismanagement, outright theft, and contracts and jobs for pals have left it broke and unable to keep the lights on. About a third of its capacity is out of action because of breakdowns. Rolling blackouts that regularly shut factories, shops and mines are pushing the economy towards recession. Mr Mboweni promised to make it easier for independent firms to sell power into the national grid. Many have heard that before.

The hope for Mr Mboweni and President Cyril Ramaphosa is that these steps will be enough for South Africa to avoid a downgrade this year by Moody’s, the only one of the three main credit-rating agencies not to rate the country’s debt as “junk”.Mr Ramaphosa is reluctant to pick a fight with the opponents of reform, partly because he fetishises consensus, but also because he has an eye on the ANC’s National General Council meeting in June. Two of his predecessors, Thabo Mbeki and Jacob Zuma, were “recalled” from office by the party before they had concluded their terms. Party insiders believe that the ANC’s rules would not allow opponents of the president to oust him at this year’s gathering. But they may try nonetheless.

Read more: The Economist

UK Prime Minister Boris Johnson transferred to intensive care

Over 51,000 people in the United Kingdom have tested positive for COVID-19, including Prime Minister Boris Johnson and Prince Charles, heir to the British throne.

Well done to you know who africasacountry Because they had to pay for arresting JoeBiden The uneducated kleptomaniac got us here. Evidence, if any was needed, of JZ's destructive legacy. And where did all that money go? Certainly not in health, education or water infrastructure. All we know is that there are people living it up in Dubai.

The World got together & Sung to help poor Africa ! Billions of foreign/year raised for the Worlds poor only to end up inclusively going to Africa instead ? Africas begged the World to rid them of World debt successfully ! Alas it didn't take Africa long to rack up debt again ! does this have anything to do with the murder of white farmers?

SA are you OK ? they had it, they lost it For anyone not in the know, the campaigned for reelection of the very same government that brought about this situation in 2019. For those who knew, lest we forget. And everyone's smiling..How cute..

In South Carolina (and Only South Carolina) Tom Steyer Is a Front-runnerTom Steyer is everywhere in South Carolina, on billboards and TVs. But unlike in Iowa or New Hampshire or Nevada, people there don’t just look right past him. Olivianuzzi reports Olivianuzzi Weird way to spell spoiler. Olivianuzzi Pathetic Olivianuzzi He’s not winning anything though: just hurting other viable candidates TomSteyer no path to the nom, what’s the point?

Вижу как госдолг США в 110% ВВП никого не смущает. )) Future is brown... 😏 All that Gold and Diamonds, what a joke

Sanders, Bloomberg take blows in combative South Carolina debateIn a night filled with raised voices and interruptions, the debate stage in Charleston took on the air of a boxing match. Here’s who ducked and weaved, who took a punch, and who tried to stay above the fray. some of these candidates will have to go the democratic voters want it so Watching!!! Never Trump ,,, No Comrade Sanders

Analysis: Who won the Democratic debate in South Carolina?Analysis: Here's how the candidates performed in a debate that repeatedly descended into yelling matches rife with interruptions, capturing the tension of the larger contest. Trump Trump The winner? ANYONE who didn’t watch.

Biden nabs Clyburn endorsement before South Carolina primary'South Carolina chooses presidents.” Joe Biden describes the South Carolina primary’s history of launching Democratic presidential hopefuls after Rep. James Clyburn's endorsement. Biden is a segregationist They chose Hillary last time......

South Korean virus cases jump again, first US soldier infectedUS military statement says a 23-year-old soldier is in self-quarantine at his off-base residence adding that he had been based in Camp Carroll in a town near Daegu, and visited both Carroll and nearby Camp Walker in recent days.

4 Takeaways From The South Carolina Democratic DebateThere was shouting. There was overtalk. There were lots of attacks. So what to make of that muddle? Here are 4 takeaways that emerged as the dust settled on the 10th Democratic debate 👇 The moderators didn’t really moderate. 🤷🏼‍♀️ The takeaway was... Trump won. Key takeaway - primary season is too long. We need a national primary. Of course, when you have dozens of debates infighting occurs. The process is flawed.

Obama touts Elizabeth Warren's coronavirus recovery proposals

Civil rights icon John Lewis endorses Joe Biden

Coronavirus live updates: Boston issues curfew to increase social distancing

Finally, Some Privacy: After 10 Years, Giant Pandas Mate in Shuttered Zoo

Boris Johnson is 'stable' in ICU amid questions about who's running the UK

Man Honestly Thinks He’s Going To Get To Bed Early

Trade Adviser Warned White House in January of Risks of a Pandemic

Write Comment

Thank you for your comment.
Please try again later.

Latest News


26 February 2020, Wednesday News

Previous news

Harvey Weinstein’s conviction is less significant than it seems

Next news

America has a history of lynching, but it's not a federal crime. The House just voted to change that