The sums aren’t adding for South Africa on either the spending or revenue side. It’s a problem that’s developed over time with no action being taken.
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South Africa’s new finance minister comes with considerable skills and political finesse needed to steer the country out of its economic quagmire.
South Africa should look towards inclusive growth to push back the growing levels of poverty within the population.
It is unlikely President Zuma will announce a structural changes in his State of the Nation Address. This, despite education being in dire need of fundamental restructuring and an economy in decline.
The general loss of faith in the economy is the most important issue President Zuma must address. More radical social and economic transformation, with emphasis on land reform will be most critical.
South Africa’s government should urgently announce a moratorium on civil service employment growth. The country has reached its upper limit in the number of civil servants that can be sustained.
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Visiting Professor at the Business School, University of the Witwatersrand
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Associate Professor of Taxation Law, UNSW Sydney
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