The BLSA Hub

SAA and its stakeholders are striking this weekend and the airline will lose about R50m a day, but what we would ask of its shareholder representative that it now back its board and executive in managing its dispute. To intervene now would only strengthen the belief among unions that it is indeed “too big, too fail”, serving to harden positions and in effect hasten SAA’s demise.

Broader macro constraints need to be tackled, such as the implementation of measures that will ensure energy security, stabilising the debt pile and consolidating the fiscus. Unless these are addressed, many participants may continue viewing events like the investment conference simply as mere talk shops.

THE sixth administration is going to have to face up to some hard truths over the next few months if it is going to show some real commitment to drawing a line in the continued deterioration of its finances. There’s no harder truth than its bloated wage bill.

Recovery should kick off with allowing state-owned enterprises to be run like businesses

The MTBPS has brought home how serious our financial predicament is. All social partners, including business, labour and civil society will have to work together to turn around what has become an entrenched low growth trend. BLSA is ready to play its part in developing the solutions needed to put South Africa back onto a growth path that will deliver our people a better future, free of poverty.

All South Africans stand to benefit from a reliable, low-cost electricity supply industry that can support the development of the economy. We look forward to further development of the future scenario for Eskom, including details on the financial plan to stabilise the utility’s balance sheet and the appointment of a permanent CEO to deliver on that the roadmap.

In years past, this week’s speech – that doesn’t carry as much weight as the February budget – was primarily seen as a marker in calendars of just when the state would be unofficially going on its summer holidays. It couldn’t be more different now as it will serve as a statement of intent of Ramaphosa’s first administration, and perhaps the constant date changes bear testimony to its importance – we hope.

Despite our reservations about the planned coal and nuclear future and further expansions because of cost, environmental and perhaps unavoidable political considerations, we welcome the clear path being set in the IRP for the industry – and for the clear role for investors to play in shaping our energy future. This week’s load-shedding serves no better reminder of the urgency of the matter.

The loss of unambiguous independence of the bank in its oversight of financial stability would potentially put South Africa at odds with international obligations and risk its continued access to the global financial system. SA is highly dependent on foreign capital inflows to finance its budget and current account deficits.

Prescribed assets primarily will divert savings from the private sector to the public sector, reducing private sector investment. It is also a challenge to the principle of property rights, effectively expropriating the savings of a certain segment of the public.