The Banking Association of South Africa has called on Finance Minister Malusi Gigaba to clarify how President Jacob Zuma’s announced free higher education will be funded.
On Saturday President Zuma announced far-reaching policy changes in which higher education will be fully-funded for students from poor and working class homes.
Meanwhile, economist Dawie Roodt has warned that President Zuma’s decision may lead to a further downgrade for South Africa.
Roodt, says the funds to support it will probably come from other departments, increased taxes or further borrowing.
He says the timing of the decision is also questionable.
“Why now, especially during this election time for the ANC’s new leadership and I think this is a very populist move by the president and it sounds a bit sinister doing it especially at this time.”
“We cannot afford it, that is just the reality and I also think the president probably threw whoever is going to take over from under the bus because once you’ve made an announcement like this you simply cannot overturn a decision like this.”
“So I am afraid that whoever is going to be taking over as president has a big problem on his hand or her hands.”