CHRIS GILMOUR: Minister’s magical thinking disguises financial stagnation and low confidence
"While Gigaba promises to deliver a grand plan, the South African economy continues to flounder"
Amid the saturation media coverage of the yawn fest that was the 2017 ANC policy conference, Finance Minister Malusi Gigaba made a couple of announcements. The first was an oblique reference to SA perhaps resorting to external funding to help kick-start the economy. The second was a bold announcement that he would unveil his plan to grow the economy at 6% a year, due July 7. Well, that deadline came and went, and at time of writing there is no peep of Gigaba’s unbelievably ambitious intentions. On the first point, of SA passing its begging bowl around to external funders, does the minister fully appreciate the implications of securing outside assistance? We could certainly make a good case to the IMF for a loan or even a bail-out. But depending on the size and scope of that funding, there would be a whole host of accompanying conditions. Help from similar organisations such as the Brics Development Bank (which is effectively China) would carry an equally long list of terms. If histo...
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