Bonang Mohale, Business Leadership South Africa Chief Executive Officer says South Africa’s gross domestic product can only grow with the help of the private sector, accusing government of being anti-business.
Malusi Gigaba, South African Finance Minister delivered medium term budget speech on 25 October 2017, as South Africa tries to restore confidence in the country’s economy after several economic downgrades weakened growth this year.
The South African National Treasury expects the country’s debt to reach 3 trillion rand by the year 2020.
Raising concerns over Gigaba’s mid-term budget policy statement, Mohale says government has squandered an opportunity to be the most robust and diverse economy on the African continent.
“By the minister’s admission the government is running out of money, this is the only time that it should be going to business and saying GDP growth can only come from the private sector and say let me extend an olive branch,” says Mohale.
“Anybody that says business is on an investment boycott is talking nonsense because business as we speak today employs 13.5 million people of the approximately 15 million people that are gainfully employed, government only 2.2%. How do you expect business to invest more when you call it white monopoly capital even though it is not white.”
“We need to be saying based on this fiscal cliff it means we can’t afford the luxury of bailing out state owned enterprises that continue to behave like unrehabilitated alcoholics every year coming for bailouts when we know that the root cause is because we are putting on people that are rapidly promoted, by and large incompetent, where the only recognition is loyalty to the President,” concludes Mohale.