BUSI MAVUSO: The slow pace of change within SOEs is enough to cause panic
The government shouldn’t shirk its ultimate responsibility, which is to restructure its boutique of SOEs and make them fit for purpose
We are all panicked about the slow pace of change in the SA economic story with tensions in recent weeks pointing to that frustration unfortunately spilling out into violent protests in our major metros. By their very nature, we understand that structural reforms take a long time to bear fruit, but there’s scant evidence that they are being seriously undertaken as factional battles in the ANC keep on distracting everyone involved.
Meanwhile, this week, ratings agency, Moody’s Investors Service said the country was safe from a credit ratings downgrade over the next 12-18 months. It’s a reprieve that we hope doesn’t mean complacency in the state apparatus. If the government needed any reminding, growth is expected at 0.7%, which points to only further stresses on state revenues. ..