Top economist highlights SA’s highs and lows

WHILE South Africa’s economic climate is not all sunshine and rainbows, there are certainly some achievements the country’s citizens can be proud of.

This according to well known economist Roelof Botha, who on Thursday mixed serious political matters with refreshing humour and positive points at the PricewaterhouseCoopers (PwC) budget analysis meeting in Richards Bay.

He said South Africa has made phenomenal progress towards meeting basic needs.

‘Despite all the ills in macroeconomic terms, we are much better off than we were in 1994.

‘We have built three million RDP houses, 2 000 new clinics, access to clean water for 10 million people, new sanitation facilities for seven million people, made 4.5 million new electricity connections, redistributed three million hectares of land, introduced a primary school nutrition programme for five million children and added 16 million new social grant beneficiaries.

‘This was mostly achieved during Mbeki and Mandela’s administration,’ Botha said.

‘Trade with other African countries are also blossoming.

‘We are also rated as having the best constitution and best stock exchange in the world, are the most competitive large economy in Africa and number six in the world for sound banking systems.

‘We have food security and numbers of workers in both the private and public sectors continue to climb.’

Crippling costs of ‘Nenegate’

On the negative side, Botha said the decision by President Jacob Zuma to axe former Finance Minister Nhlanhla Nene continues to have far-reaching implications for the country.

‘I have calculated the cost of three different finance ministers in four days is a larger import bill of R9.3-billion – that equals 200 000 low cost houses, or 37 Nkandlas.

‘The erosion of existing bond holders’ asset value is R111-billion. The cost to taxpayers of a higher interest bill on public debt will be R1.2-billion.

‘We received threats of sovereign credit downgrade.

‘There has been an erosion of domestic and international investor confidence.

‘The currency depreciation is directly responsible for higher inflation and higher interest rates.

‘And the motivation for all of this seems linked to Nene having camped against unsound corporate governance at SAA and an unwise $100-billion nuclear deal with Russia.’

Botha said to address the country’s most pressing issues will require vigilance against corruption and misuse of the public’s purse, as well as the implementation of the National Development Plan through private/public partnerships.