SA runs the real risk of a sovereign debt crisis in about three years, which will feed into all our major corporations and our banking sector that managed to successfully navigate the global financial sector crash of 2008.
SA will see a return of badly needed fixed investment only if the state creates an environment that is conducive for businesses to thrive and to grow inclusively. Dabbling in prescribed assets or fiddling with the independence of the Reserve Bank will not rebuild confidence.
The positive message from government is that it is committed to driving a recovery and is open-minded on engaging with business on how to do it. The shift to level three next week is important and welcome.