By Busi Mavuso
Inflationary pressures, if sustained, suggest that we should focus on fiscal and policy reform to ensure that our economic rebound from last year’s catastrophic collapse continues.
Last week, we got bits of economic data reflecting the effects of the July unrest. The RMB Business Confidence Index slumped back into negative territory (below 50 points) in Q3, falling seven points to 43.
The current Level 3 runs to 15 October – that is too long to wait. A shift to level 2 should happen sooner.
I want to add my welcome to the incoming president Bonang Mohale and deputy president Adrian Gore, who are taking up the leadership of Business Unity South Africa (BUSA) at this crucial point.
I feel positive that we are moving in the right direction, both on the vaccine programme and the economic policy changes needed.
By Busi Mavuso
If we thought we had a jobs crisis on our hands before this pandemic, we now we have something much, much larger than we had ever imagined.
The green paper on a new social security reform programme would be debilitating on workers as they would have to contribute between 8% and 12% of their earnings.
I wish Finance Minister Enoch Godongwana all the best in his new role. He is taking on one of the most difficult jobs in the country. It is central to business confidence.
I think that the idea to allow withdrawals from their pension comes with some dire consequences if one considers that only 6% of South Africans retire with enough savingS.
As BLSA, we’ve asked the state to step in and aid the rebuild effort. National Treasury’s R39bn package to provide relief to businesses and the poor should be welcomed.
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