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The business rights watchdog AfriBusiness is of the opinion that South Africa is currently facing one of the most challenging periods since the turn of the millennium with due observance of the budget speech which Pravin Gordhan, Minister of Finance, is set to deliver shortly.
Stefan Pieterse, National Spokesperson of AfriBusiness, predicts that state debt, incompetent state officials, social overspending as well as poor political and economic policies will not be restricted in any way, but will rather increase and expand, especially with an eye on the upcoming municipal elections and accompanying election promises. Nationalisation will once again also be held up as solution to the country’s financial predicament.
According to Pieterse, Government has serious financial problems. “While Government wants to implement new projects such as the National Health Insurance (NHI) – a project that will cost tax payers approximately R256 billion per year – they argue among themselves that the economy needs to grow at 3,5% per year in order to implement it,” said Pieterse.
At the moment, Government is thus its own biggest enemy due to growing state debt as well as the implementation of destructive policies and legislation, like for example the recent Expropriation Bill, which is chasing foreign investors and companies out of the country.
“President Zuma argues that South Africa is open for business, but the facts however tell a different story,” concluded Pieterse.