South African entrenched interests could stifle reform

2019 ◽  
Keyword(s):  
South African ◽  
Trade Unions ◽  
Balance Of Payments ◽  
Growth Strategy ◽  
Power Utility ◽  
Content Type ◽  
Finance Minister ◽  
Private Sector Investment ◽  
Business Confidence ◽  
Alliance Partners

Significance Although this was above market expectations and the economy has avoided entering a technical recession, fears persist over the slow pace of reforms by President Cyril Ramaphosa’s administration. Promised details on the overhaul of state-owned power utility Eskom have yet to be unveiled, and a new growth strategy released by Finance Minister Tito Mboweni has been pilloried by the ruling ANC’s Alliance partners, the Congress of South African Trade Unions (COSATU) and the South African Communist Party (SACP). Impacts Part of the opposition to the new document reflects longstanding ANC divisions and labour unease with Mboweni, a more pro-market figure. Despite recent chatter, Pretoria is a long way off the kind of balance of payments crisis that would likely necessitate a turn to the IMF. Business confidence and private-sector investment will likely remain weak until there is clear evidence of a commitment to implement reform.

South African budget prompts cheer and wider divisions

2021 ◽  
Keyword(s):  
South African ◽  
Communist Party ◽  
Trade Unions ◽  
Economic Recovery ◽  
Structural Reforms ◽  
Content Type ◽  
The Social ◽  
Social Grants ◽  
Alliance Partners ◽  
Roll Out

Significance However, cuts to the social grants budget and a continued focus on the planned three-year wage freeze for civil servants has annoyed (among others) the ruling ANC's ‘Tripartite Alliance’ partners, the Congress of South African Trade Unions (COSATU) and the South African Communist Party (SACP). Impacts Pressure will grow on a joint National Treasury-Presidency initiative, ‘Operation Vulindlela’, to hasten long-promised structural reforms. The success of the government’s mass vaccination programme will depend on its efficacy and willingness to work with the private sector. The government's modest economic recovery projections could prove too optimistic if vaccine roll-out falters or further COVID-19 waves hit.

South Africa’s Zuma could face early exit

2017 ◽  
Keyword(s):  
South African ◽  
Communist Party ◽  
Economic Freedom ◽  
Current Crisis ◽  
Sharp Drop ◽  
Content Type ◽  
Early Exit ◽  
Finance Minister ◽  
Freedom Fighters ◽  
Alliance Partners

Significance The news prompted a sharp drop in the value of the rand, its largest one-week fall against the dollar since 2015 and the previous sacking of a finance minister. Zuma’s decision came against the wishes of many within the ANC and its alliance partners and prompted opposition parties to propose a parliamentary motion of no confidence in the president. Impacts Anti-Zuma protests could bring rival trade union organisations closer together. Poor relations between the ANC and the South African Communist Party (SACP) will worsen ahead of policy and elective conferences. The Economic Freedom Fighters (EFF) will benefit most from the current crisis, as the Democratic Alliance (DA) struggles with infighting.

South Africa’s Zuma will limp on as ANC splits further

2017 ◽  
Keyword(s):  
South African ◽  
Trade Unions ◽  
Public Affairs ◽  
Left Wing ◽  
The South ◽  
South African Council ◽  
Content Type ◽  
Freedom Fighters ◽  
Alliance Partners ◽  
National Coalition

Significance Earlier this month, the South African Council of Churches (SACC) and the Public Affairs Research Institute (PARI) released separate reports alleging a corrosive process of ‘state capture’ by influential business figures. Meanwhile, officials in the ANC’s alliance partners -- the South African Communist Party (SACP) and the Congress of South African Trade Unions (COSATU) -- are openly calling for Zuma's resignation. Impacts If Nkosazana Dlamini-Zuma triumphs in the ANC's leadership contest, COSATU could withhold support for the party at the 2019 elections. Support for both the Democratic Alliance and the Economic Freedom Fighters will increase and hasten formal national coalition talks. The nascent left-wing United Front movement could draw support from the ANC if a coalition with new trade union SAFTU is formalised. Racial polarisation could worsen as ANC populists blame 'white monopoly capital' and 'foreign agents' for government failings.

The South African public service wage bill deadlock in 2021: living on the edge

2021 ◽  
Vol 11 (4) ◽  
pp. 1-15
Author(s):  
Marianne Matthee ◽  
Albert Wöcke
Keyword(s):  
Fiscal Policy ◽  
Learning Outcomes ◽  
South African ◽  
Public Service ◽  
Subject Area ◽  
The South ◽  
Content Type ◽  
Academic Level ◽  
Finance Minister ◽  
The Government

Subject area Macro-Economics. Study level/applicability Undergraduate and MBA. Case overview The COVID 19 pandemic-related restrictions devastated South Africa’s economy in 2020 and although the restrictions were generally less damaging than in 2020, the government had to budget for vaccinations and rebuild the economy. Public service unions had just announced that they were demanding an increase of 4% above inflation for their members and that they were preparing for a strike. They were bitter about the fact that the South African Government had withdrawn from the last year of a three-year wage agreement in February 2020 and their members had not received an increase for the two years. These demands and Finance Minister Mboweni’s response to them had to consider the structural and cyclical impact on the fiscus and economy. Expected learning outcomes The learning outcomes are as follows: understand the general objectives of fiscal policy and stakeholders’ interests; understand the tradeoffs in fiscal policy and the implications of taking a position; and make recommendations based on reasoned judgements about those recommendations. Complexity academic level Undergraduate and MBA level courses on Macro Economics. Supplementary materials Teaching notes are available for educators only. Subject code CSS 10: Public Sector Management.

UCOOK: growth challenges faced by a small- to medium-sized South African venture

2019 ◽  
Vol 9 (3) ◽  
pp. 1-33
Author(s):  
Geoff Bick ◽  
Jeanné Odendaal
Keyword(s):  
Learning Outcomes ◽  
South African ◽  
Business Students ◽  
Emerging Market ◽  
Growth Strategy ◽  
Sustainable Growth ◽  
Strategic Decision ◽  
Content Type ◽  
Teaching Case ◽  
Post Graduate

Learning outcomes The learning outcomes are as follows: to understand how technology can be used to create innovative entrepreneurial opportunities; to develop analytical and critical thinking skills to understand organisations, industries and their dynamics; to analyse strategic options for an entrepreneurial organisations and motivate a proposed strategic direction; and to assess the inter-functional requirements for an entrepreneurship to successfully implement a strategy. Case overview/synopsis UCOOK, a successful emerging economy SME, is confronted with the threat of retail giants (e.g. Checkers and Woolworths) entering the meal kit space. No longer the only “new kid on the block”, UCOOK has to consider a sustainable growth strategy to remain competitive. The case provides the reader with a snapshot of experiences of a meal kit entrepreneurial venture and what it entails for them to grow in the South African milieu. Principally, this case is designed to impart knowledge and stimulate a practical understanding of entrepreneurship and strategic decision-making in the meal kit industry. Additionally, the purpose is to serve as inspiration for business students to see the opportunities that lie within strategically astute emerging market ventures. Complexity academic level The primary target audience for this teaching case is postgraduate business students, especially students of entrepreneurship, strategy and e-commerce. This teaching case is intended to be used as case study in post graduate business programmes such as Master of Business Administration (MBA), a specialist Masters programme such as MM (Entrepreneurship), post-graduate diploma in management (PGDip), as well as selected executive education programmes. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

South African SOE reforms unlikely under Zuma

2016 ◽  
Keyword(s):  
South African ◽  
Risk Perceptions ◽  
Content Type ◽  
Higher Education System ◽  
Macroeconomic Risk ◽  
Insurance Reform ◽  
Finance Minister ◽  
Health Insurance Reform ◽  
Railway Infrastructure ◽  
Patronage Politics

Subject Outlook for South Africa's state-owned enterprises. Significance On December 23, at Finance Minister Pravin Gordhan's instruction, South African Airways (SAA) concluded a deal with Airbus to lease five A330-300 aircraft. The deal overturns Chairperson Dudu Myeni's initial plan, which involved leasing the aircraft through local middlemen at far higher costs. However, this is a rare example of probity overcoming patronage politics, which has become the norm in state-owned enterprises (SOEs). Impacts Delays to railway infrastructure upgrades mean that new trains acquired by PRASA will be unusable in the medium term. Shortages of technical skills such as engineering, due to inadequacies in the higher education system, will add to SOE woes. The government's superficial funding proposal for its high-cost health insurance reform will worsen macroeconomic risk perceptions.

Rift with EU looks likely after Turkish referendum

2017 ◽  
Keyword(s):  
Balance Of Payments ◽  
Administrative System ◽  
Foreign Investors ◽  
Content Type ◽  
Business Confidence ◽  
The Government

Significance Its fairness has been challenged by the opposition and international observers. Erdogan is nevertheless pressing ahead with consolidating his authority; in the coming months he will shake up Turkey's administrative system. Impacts Erdogan will remain firmly in control inside Turkey and the opposition will be further marginalised. Business confidence in Istanbul will remain low. The government will seek foreign investors in such sectors as mining to help ease balance of payments difficulties.

Economic crisis will sustain unrest in Zimbabwe

2016 ◽  
Keyword(s):  
South African ◽  
Economic Crisis ◽  
Credit Rating ◽  
Civil Servants ◽  
Content Type ◽  
High Unemployment ◽  
Finance Minister ◽  
Fund Development ◽  
The Government ◽  
Sovereign Credit Rating

Significance Discontent over President Robert Mugabe's mismanagement of the economy is deepening, particularly over high unemployment and severe cash shortages, which have caused the government to delay paying civil servants' salaries. Impacts Pretoria's demands that Harare drop its restrictions on South African imports will likely increase bilateral tensions. Smugglers will take advantage of the region's porous borders to circumvent these rules, eg by routing goods via Mozambique. The mines and minerals amendment bill, which requires mining firms to list on the local bourse, will likely deter investment. Tensions between Finance Minister Patrick Chinamasa and leftist ministers could result in further policy reversals. Plans to gain a sovereign credit rating and issue Eurobonds to fund development will remain unrealised, at least for several years.

South Africa's ANC will hinder Ramaphosa’s reform plan

2019 ◽  
Keyword(s):  
Voter Turnout ◽  
Load Shedding ◽  
Power Outages ◽  
Power Utility ◽  
Content Type ◽  
Finance Minister ◽  
Reform Plan ◽  
State Capture ◽  
General Elections ◽  
Significant Bearing

Significance As general elections approach on May 8, recurring ‘load shedding’ (power outages) by state-owned power utility Eskom and damaging ‘state capture’ (corruption) revelations against party and state officials are heightening pressure on the ruling ANC. Impacts Declining voter turnout, and overall participation of eligible voters, would prompt growing concern about rising apathy and populism. Whether Finance Minister Tito Mboweni remains in post after May's polls could have a significant bearing on several reform measures. Given the ANC and the main opposition DA's recent struggles, several smaller parties could perform above expectations.

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