Proletarian shopping at the Soweto Maul: Cele’s whistling in the graveyard doesn’t scare off the criminals

SA’s 2018 Crime statistics & the economy (1)

SA is increasingly deteriorating into a combination of the Wild West and a Mafia state with Government incapable of keeping crime in check. Minister Beki Cele admits “the ball was dropped” but remains adamant that “(w)e haven’t reached a state of lawlessness in South Africa and we won’t”.

The South African population begs to differ:  Crime pays… and quite handsomely as well.

Fred Mouton on crime stats

The returns on crime far exceeds returns on long-term investment in blue chip stocks.  South Africans’ trust in and reliance on the police is scarcer than icebergs in tropical oceans.  And inefficient policing doesn’t only kill the economy:  it kills justice as well.

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The folly of creating businesses whilst tolerating a criminal-friendly environment

The South African enterprise world remains in critical condition despite numerous initiatives to cultivate entrepreneurship and new businesses since the real causes undermining its well-being are not addressed.  One of the fundamental causes for a struggling enterprise world is the fact that SA is more criminal-friendly than enterprise friendly.

Mooi River LEGO

We’ve seen that:

Comfortable in this paradigm, Government embarked on an interventionist road to transform the economy in accordance with its perceived reality. It launched a range of black enterprise incubation programs with massive grants, prescriptive procurement strategies, BEE, industry charters, interference with IP and a commitment to even expropriate without compensation.

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SA’s fight against unemployment: The importance of pet food, popcorn & detergents in the quest for growth

On a sunny autumn morning in Bloemfontein I visited a business hand-picked by Government as a National Gazelle: one of the firms Government believes has the potential for massive growth and substantial job creation to attack the three-headed dragon of inequality, unemployment and poverty.

Popcorn & Flat Bread

The National Gazelles Programme is financed (well, by tax-payers) through SEDA (Small Enterprise Development Agency) and the Department for Small Business Development (DSBD). In the first phase 40 firms were identified in “10 priority industry sectors aligned with the National Development Plan and SEDA’s SME strategy”. The recruitment of the next batch is underway. (In enterprise literature, a Gazelle is defined as a company that grows by at least 20% per annum for 4 successive years)

Having covered  the decline in the number of formal businesses and how company losses now exceed taxable company income , as well as Government’s failure to create a business-friendly environment , the focus is now on the positive steps Government has taken to promote private enterprise.

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State Capture disguises the devastation by anti-business policies: Bafana-Bafana fared better than the economy

The anger because of billions lost through corruption and state capture comes at an enormous opportunity cost. The focus on the Zuma-Gupta-axis acts as blinkers that prevent a focus on the massive cost of adhering to failing economic policies and strategies – a cost far greater than the billions swindled away through corruption.

Three figures show clearly that the economic malaise is much deeper than the damage caused by corruption parasites and that the impact of poor policies started long before corruption landed under Government privilege at Waterkloof. Blaming the economic ills of South Africa on State Capture is a massive over-simplification.

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Cyril on a tight-rope: Paradox, not policy certainty the outcome of the ANC conference

Will the honeymoon breathing space of optimism that the worst corruption is over and that more business-friendly policies and better public spending behaviour be utilised or wasted? With new reports of the ANC’s national executive committee setting wheels in motion to recall Zuma as president, it is important to note that acting against Zuma would still not set enterprise friendly policies in place.

South Africa’s post-apartheid ANC policies and strategies dealing with enterprise development have been largely driven by an increasingly unfriendly framework for established businesses as well as an anti-growth premise. In the final gasps of December 2017, the ANC Conference even took unanimously policy positions that makes mockery of Ramaphosa’s utterances of making growth the priority.

The decisions to endorse Zuma’s announcement on free tertiary education and to change the Constitution to enable expropriation without compensation, provide ample proof the ANC doesn’t understand what is required to ensure growth and to step back from the fiscal cliff.

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Ready to choose a San hunter rather than a Sherpa guide for mountaineering? Dlamini-Zuma on Radical Economic Transformation

When Nkosazana Dlamini-Zuma announced her Manifesto for Change, she reminded me somewhat of the stern Mother Abbess singing “Climb every Mountain” for Maria (Julie Andrews) in The Sound of Music.

Definitely not her voice, but her words… Dlamini-Zuma summoned support for Radical Economic Transformation (RET): “We must know which hills to tackle next. …(t)hese are the mountain of economic transformation, the highland of land redistribution and the summit that must see us educating and skilling our people. If not, the negatives will swallow the gains we have made.

Mother Abbess

Marvellous libretto…

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