South Africa: Growth Uber Alles, Dammit - Mboweni Promises Structural Reforms - Again

(file photo).

As the government prepares to announce a second tranche of economic support measures, Finance Minister Tito Mboweni stresses that higher growth is urgent and unless urgent structural reforms are implemented, the fiscus may arrive at the edge of a cliff.

Finance Minister Tito Mboweni and his colleagues in the government economic cluster are determined not to waste a good crisis.

The ministers will present a comprehensive package of economic reforms to Cabinet on Wednesday, which are designed in equal measure to provide support to an ailing economy and to kick-start growth once the lockdown is eased.

Among the measures will be expanded support for SMME lending through the banking system, a measure seen in other countries.

It is also expected that Mboweni will announce a temporary increase to the child-support grant and/or the old-age grant.

"We have to decide which grant we increase so that we increase support for the whole community. It is possible that more people will gravitate towards the old people for support," he told the media on a conference call on Tuesday.

The measures will be supported by an economic recovery plan, much of which sounds like Mboweni's now-familiar economic wish list.

It will include restructuring...

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