As the countdown clock to the most challenging State of the Nation Address ticks faster, political parties in Parliament and economists are backing the Cabinet’s view that the debate must be dominated by strategies to revive South Africa’s ailing economy.
Democratic Alliance (DA) leader Mmusi Maimane says President Jacob Zuma will have to explain how he’s going to raise capital to keep the country afloat.
Possible downgrades, a depreciating Rand, a deteriorating inflation outlook, weak commodity prices and stagnant growth are among a cocktail of negative realities facing the country.
Maimane says, “We certainly can’t borrow more money. We can’t print more money and we have little room left to raise taxes. So that leaves the option of selling off state assets and cutting waste. And this is where we call on the president to be particularly bold.”
Economist Waheed Abdul says, “We need to assure the markets that we are serious about fiscal consolidation so that we can avoid downgrades and moving into junk status. That will be a disaster for the country and our economy.”
There are concerns that point-scoring and political bickering in parliament might distract the nation from the real issues.
Maimane has promised they will not take their eyes off the ball. “Just because we will not resort to chaos, it does not mean that President Zuma will get an easy ride from us in the weeks to come.”
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– By Manelisi Dubase
