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SONA 2016 left foreign investors clinging to their wallets. This was the reaction of Armand Greyling, Law and Policy Analyst at AfriBusiness, after President Jacob Zuma announced Government’s economic plans of action for 2016.

According to Greyling, Zuma’s new initiative was mere window dressing in a half-hearted attempt to appease both business and foreign investors. “We do not need improved marketing towards investors. We require drastic and thorough economic policy changes.”

“The ANC clearly finds itself in a state of denial over the causes of its failed policies. The Zuma government realises that the country is facing significant economic problems, but it does not comprehend that the causes of these problems are the ANC’s failed economic transformation policies,” added Greyling.

A positive step however was the acknowledgment that state-owned enterprises should be rationalised. Another point is the intent of allowing private and independent parties to enter the electricity production market.

The country will have to wait until the Minister of Finance, Pravin Gordhan, delivers his budget speech to assess how all the initiatives regarding the reduction in government spending will be implemented. AfriBusiness is of the opinion that the best way to put a stop to corruption, overspending and mismanagement and to limit expenses, is to lower taxes. “Bureaucrats can’t waste money they don’t have,” concluded Greyling.

Issued by AfriBusiness