When President Cyril Ramaphosa acted Zuma-like last week by announcing late at night that the ANC had decided to amend Section 25 of the Constitution as a sort of economic stimulus package, I wondered what such a stimulus would entail after 24 years of ANC economic mismanagement. The government redistributes benefits and rent-seeks. No wonder we have a commission of inquiry into state capture. The economy shrunk by 2.2%in the first quarter and the fuel levy and VAT had to be increased to replace shrinking revenue due to its rent-seeking and redistributive policies. The president alluded in his inaugural state of the nation address to evidence-based policies — so why the rush to provide economic stimulus? I think it is all about voter persuasion in preparation for the 2019 general election. This view is also supported by the ANC’s hasty reaction on broad-based black economic empowerment (B-BBEE) following the DA’s provocative announcement. Before I substantiate my argument, I believe...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.