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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now