Interventions by governments and monetary authorities around the world have been dramatic in response to Covid-19 – reminiscent of war times.

By Busi Mavuso

SA needs to implement structural reforms, which will imbue the state with credibility at a time when it will count the most as investors settle into a post-coronavirus world.

What we called for in last week’s Budget Speech 2020 was substance rather than the bluster of words of intent. Tito Mboweni rose to the challenge.

Much is riding in the 2020 Budget speech because a slide into full junk status by Moody’s is a very clear and present danger.

President Cyril Ramaphosa gave a positive SONA 2020 with some real plans to deal with our economic problems. The challenge is implementation.

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.

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.

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.