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.
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.
By Busi Mavuso
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.
With alcohol sales locked down again, South Africa needs to make the economic recovery as urgent as our health response.
Better consultation between all stakeholders in the economy could help avoid some unnecessary pitfalls if SA has to revert to a hard lockdown.
Amid evidence of maladministration and unauthorised expenditure, most municipalities are unable to cope with the Covid-19 pandemic.
An important background issue to get right as we face the Covid-19 crisis is that business and government must work together, while understanding our different functions.
SA can’t afford to lose hope and resign to the worst. Business and government have to work together to ensure that the least amount of lives are lost and that the economy holds a promise of a better tomorrow.
Not all government debt is bad. The key is to ensure funds are geared towards growth-enhancing measures that will benefit the vast majority.
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