By Busi Mavuso
SA is being bailed out by the IMF because we can’t finance the Covid-19 battle ourselves. That’s because of our low growth over the last five years.
By Busi Mavuso
President Cyril Ramaphosa’s address to the nation last week was focused on growing corruption around funds dedicated to our war against Covid-19. A sad state of affairs.
Scenes of police using water cannons against protesting restaurant workers in Cape Town were shocking. People have a right to protest.
The CEOs of SOEs have to reform them. That’s their function and they need to be backed if SOEs are going to be part of the solution to the deepening economic recession.
If supporting women to become financially independent is among the state’s priorities, denying women and youth the ability to earn a living due to lockdown of industries such as tourism, is the ultimate contradiction.
An IMF loan through its stand-by arrangement means SA would have to sign up to conditions. While on the surface it is presented as not being a loss of sovereignty, in reality it is.
The need for transparency increases dramatically especially when lockdown decisions could destroy the livelihoods of millions of citizens, as the alcohol ban does.
SA’s application for $4.2bn from the IMF exhausts the ‘conditionality free’ money; the next step will be borrowing based on harsh but necessary conditionality.
Quite simply, the restructuring of SAA into a commercially sustainable airline is too expensive for the state to fund.
We extend unwavering support to Business for South Africa (B4SA)’s economic recovery plan in its response to the Covid-19 pandemic and the economic shock it has caused.
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