South Africa: The SA Economy Is in a Terrible Jam - This Is How to Fix It

analysis

When Finance Minister Tito Mboweni delivers his Budget in 2020, he will very likely have to do something depressingly familiar; he will have to announce that for the 10th year in succession, the Treasury overestimated SA annual growth for the year. It's frankly one of those extended calamities you don't notice because it goes on so long. SA has to break out of this depressing cycle and fast, which will require some rough compromises. But what? Here's one idea. It may not be the best. It may not work. But it may provide an example of the type of action needed.

If you are in the unfortunate position of running a loss-making company, let's call it Doom Incorporated, what do you do? Well .. it goes without saying, it's hard. The first thing you don't do is listen to the noise of the doom-mongers [but you might need to listen to shareholders], for the simple reason that it doesn't help.

And there is an extraordinary amount of doom-mongering about the state of the SA economy, and rightly so, at the moment. South Africans have endured an amazingly long period of lacklustre growth, high levels of corruption, rank stupidity, and a...

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