South Africa heading for an economic collapse
25 June 2020
Whether you pour one litre of water into a bucket riddled with holes, or a thousand litres, the outcome will be the same: there will be no water left.
The bottom line of Finance Minister Tito Mboweni’s interim budget speech is that there is no longer enough water to pour into the bucket – mainly because we’ve borrowed too much money already. However, the availability is irrelevant, because failure to adjust the policy environment (fixing the bucket) will result in South Africa’s economic collapse.
This is exactly what happened in Zimbabwe.
The South African economy has been robbed blind, and almost two years after the start of the Zondo commission – which heard damning evidence about state capture and looting – not a single person has been sent to prison. As long as the demon of fraud and looting is allowed to roam freely in the civil service, the size of the budget will make no difference.