{"id":55781,"date":"2023-10-31T06:16:58","date_gmt":"2023-10-31T06:16:58","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever"},"modified":"2023-10-31T06:32:26","modified_gmt":"2023-10-31T06:32:26","slug":"the-big-plan-to-save-south-africa-cant-go-on-forever","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever","title":{"rendered":"The \u2018big plan\u2019 to save South Africa can\u2019t go on forever"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The private and public sectors are working together in an \u201cunprecedented\u201d move to fix the nation\u2019s most significant challenges \u2013 but this relationship will eventually have to end.<\/p>\n

On Wednesday, 1 November, Finance Minister Enoch Godongwana will deliver the Medium-term Budget Policy Statement (MTBPS), with the minister having to address both a decline in revenue as company income tax dropped significantly and a serious increase in spending due to a higher-than-expected wage hike of 7.5%.<\/p>\n

Although National Treasury has provided several ideas for lowering expenditure, such as combining ministries and departments to save funds, Sisamkele Kobus from Ninety One said that serious policy changes will likely only be implemented in the 2024 Budget.<\/p>\n

\u201cThe MTBPS in November is only likely to reflect a mark to market for the fiscal slippage and not provide a material policy response yet,\u201d Kobus said. This sentiment was shared by Business Leadership South Africa (BLSA) CEO Busi Mavuso, who predicts that Godongwana will hold the line.<\/p>\n

\u201cWe need to see investment, particularly in the infrastructure needed to drive economic growth. The minister has signalled that some infrastructure spending will be delayed as the government seeks to shore up cash to manage its way through the shortfall,\u201d Mavuso said.<\/p>\n

\u201cThe fiscal discipline that implies is good for business confidence, though infrastructure is key to resolving constraints on the economy. These competing demands make the minister\u2019s job very difficult.\u201d<\/p>\n

She added that the public sector could lean on the private sector to ensure that there is investment in infrastructure, such as what we are seeing in the electricity market.<\/p>\n

The public and private sector partnership was launched in June of this year when President Cyril Ramaphosa met with business leaders to solve three of South Africa\u2019s biggest challenges inhibiting growth \u2013 energy, crime and logistics. Since the initial meeting, over 100 CEOs from South Africa\u2019s biggest companies offered their expertise to the government.<\/p>\n

\u201cThese have a specific purpose \u2013 to unlock serious constraints that are worsening the business environment … The private sector has the skills and the resources, so it makes sense that we support the government in this way,\u201d Mavuso said.<\/p>\n

\u201cBut I want to make it clear that this is not a blank cheque nor an invitation to dependency. The objective is to support the development of state\u2019s capacity for it to manage the economy and provide services. This support must be properly regulated.\u201d<\/p>\n

She noted that the support from the private sector is temporary and aims at transferring skills to the public sector in a bid to fix things that have gone wrong.<\/p>\n

After these issues are effectively tackled, a normal public-private relationship, where the state regulates and provides public services while businesses grow the economy and employment, will return.<\/p>\n

\u201cOur partnership, therefore, has an endpoint,\u201d Mavuso said. Godongwana\u2019s choices The MTBPS could bring the public-private relationship towards its endpoint if the Minister ensures fiscal discipline.<\/p>\n

Mavuso said that effective allocation of resources, departments working together on structural reforms, and ensuring that troubled state-owned enterprises \u2013 mainly Eskom and Transnet \u2013 can stand on their own two feet will grow confidence.<\/p>\n

\u201cOf course, it is not Treasury\u2019s job alone \u2013 the operational and governance issues need to be addressed by other cabinet members, but business confidence will be built if we see coordinated action happening between departments,\u201d she added.<\/p>\n

\u201cThe MTBPS, therefore, is an opportunity to build confidence on several fronts. It can demonstrate fiscal discipline by reining in spending and limiting tax increases or greater debt issuance. It can show that the budget decisions are driven by growth considerations, spending on upskilling and improving the public sector, while also supporting investment.\u201d<\/p>\n

\u201cIt can support private sector investment by endorsing the state\u2019s commitment to partner with private investors to drive infrastructure investment.\u201d<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The private and public sectors are working together in an \u201cunprecedented\u201d move to fix the nation\u2019s most significant challenges \u2013 but this relationship will eventually have to end. On Wednesday, 1 November, Finance Minister Enoch Godongwana will deliver the Medium-term Budget Policy Statement (MTBPS), with the minister having to address both a […]<\/p>\n","protected":false},"author":84,"featured_media":55779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-55781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nThe \u2018big plan\u2019 to save South Africa can\u2019t go on forever - South Africa<\/title>\n<meta name=\"description\" content=\"The private and public sectors are working together in an \u201cunprecedented\u201d move to fix the nation\u2019s most significant chal ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The \u2018big plan\u2019 to save South Africa can\u2019t go on forever\" \/>\n<meta property=\"og:description\" content=\"The private and public sectors are working together in an \u201cunprecedented\u201d move to fix the nation\u2019s most significant chal ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-31T06:16:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-31T06:32:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1698721287.229149.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"The \u2018big plan\u2019 to save South Africa can\u2019t go on forever\",\"datePublished\":\"2023-10-31T06:16:58+00:00\",\"dateModified\":\"2023-10-31T06:32:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever\"},\"wordCount\":650,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/10\/sm_1698721287.229149.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/the-big-plan-to-save-south-africa-cant-go-on-forever\",\"name\":\"The \u2018big plan\u2019 to save South Africa can\u2019t go on forever - 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