Whilst the downgrading of investor status by Standard & Poor and Fitch already drives foreign investment away from South Africa with capital flight from the JSE, at the local front ineffective crime prevention by the Government is one of the largest disincentives for enterprise investment: a million people would have considered home-based businesses were it not for criminality. Continue reading “If you thought the S&P and Fitch downgrades scare investors away… Government’s security & protection deficit prevents a million local would-be entrepreneurs from investing”
With Moody’s soon to announce their assessment of SA’s credit risk, Finance Minister Malusi Gigaba made it clear that a white minority was controlling the economy through a monopoly and that was now to change. Gigaba, speaking mostly in isiZulu, said “The economy is controlled by a minority; they are a monopoly. There are a lot of companies owned by very few people and the services and products on offer enrich these few people.” (Gigaba: It is time to put us first ).
Addressing an ANC Youth League event in Pinetown, Gigaba remarked that there was an agreement in 1993 that white people would continue to have a say in the economy. The ANC stayed committed to this, “but now has come a time for change. It is time to put us first.” Continue reading “If monopolies are the problem, start dismantling the worst: the State-owned Enterprises”
One would expect Malusi Gigaba as new Minister of Finance to consider avoidance of further down-grades by rating agencies as his top priority. Policy confusion and instability coupled with growth unfriendly strategies already caused the Fitch and the Standard & Poor downgrades. However, Gigaba’s comments yesterday indicated that he is more concerned about growing black owned enterprises than about growing the economy or receiving value for public money. Continue reading “With Gordhan out of the way Gigaba seems keen to embark on an anti-growth and anti-poor strategy”