As SA suffers a new wave of power cuts, or to use its gentler euphemism “load shedding”, one has to wonder how we are going to get ourselves out of the hole we are in. There is government-issued debt, government-guaranteed debt issued by state-owned enterprises (SOEs) such as Eskom and SAA, and the direct debt of the same entities. All need to be serviced in an environment of virtually no growth, increasing unemployment, declining tax revenues, poor education and deteriorating health-care services. In fact, there is a long list of cash-hungry initiatives, which, if not addressed soon, will quickly send us further into the economic abyss. Most significantly, we are not only running out of money, we are running out of time. If we do not get the fiscal situation under control we will waltz into the arms of the IMF and an austerity-loaded bail-out. Unfortunately, we have very few options on the table. Consequently, one needs to be a lot more creative in how we allocate what resources we...

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, Morningstar 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.