Business28.10.2015

Economic lunatics are running South Africa: report

By Staff Writer

Finance Minister Nhlanhla Nene recently announced that South Africa’s economic growth had been revised down to 1.5%. In February, Treasury had projected growth of 2% for 2015.

While global economic pressures are weighing on the local economy, structural problems play a role in SA’s economic woes.

Many people blame the ANC government for these structural problems, with financial ideologies which are steeped in 70s’ communist rhetoric.

Biznews editor Alec Hogg published an article titled “Proof that economic lunatics running SA – consider Randgold Resources story”, arguing that local politicians are messing up the economy.

He highlighted mining companies, which are facing far more challenges in South Africa than in other African countries.

While mining companies are nurtured and supported elsewhere, equivalents in South Africa are “subjected to one attack after another by Soviet-minded, anti-business bureaucrats”, said Hogg.

He said the ANC government does “its utmost to starve the nation’s businesses, its golden geese”.

Government facing big financial issues

Sasfin Securities’ David Shapiro said South Africa is in a dire financial situation. As the country runs out of money, it will battle to service its debt.

“South Africa’s debt obligation is going to continue to rise, and take more of the available revenue that comes in,” said Shapiro.

He said the amount of waste in the economy was staggering. “The amount that is being stolen, which you can see from the audited numbers, is a massive problem.”

Shapiro said the only way to alleviate poverty was by growing the economy. A good place to start, he said, was to clean up “from the bottom”.

Unfortunately, there is no plan to achieve this. He said the economy was badly run, and that the government’s control of the situation was “appalling”.