Issued by Ismail Joosub on behalf of the FW de Klerk Foundation:
On 19 February 2025, at 2 PM, South Africans waited anxiously for Finance Minister Enoch Godongwana to table the 2025 Budget Speech. The anticipation was palpable, with citizens eager to hear the government’s plans for the nation’s finances. However, in an unprecedented move, the speech was postponed to the 12th of March, following internal disagreements within the Government of National Unity (“GNU”) over a proposed 2% increase in Value Added Tax (“VAT”). President Ramaphosa simply conceded, stating, “We have limited revenue. Our revenue as it stands is not able to fund every priority that we have.”
This fiscal shortfall, however, is not merely a consequence of external economic pressures, but is significantly rooted in the government’s own actions over the past decade. Wasteful expenditure, mismanagement of state-owned enterprises (“SOEs”), pervasive corruption, strained international relations and a reliance on external borrowing have collectively eroded the nation’s financial foundation.
Wasteful Expenditure and SOE Mismanagement
Over the past ten years, South Africa has witnessed a troubling trend of escalating wasteful expenditure. In the 2023/24 financial year alone, fruitless and wasteful expenditure reached R2,57 billion, marking a 49% increase from the previous year. This pattern is not an anomaly. In 2017/18, during the twilight of the Zuma years, such expenditure was reported at R2,5 billion, indicating a persistent issue.
State-owned enterprises, intended to be pillars of economic development, have instead become symbols of inefficiency and financial drain. Eskom, the national power utility, has been plagued by financial mismanagement, leading to neglected maintenance and frequent blackouts. Similarly, Transnet, responsible for freight and logistics, has suffered from weak management, theft and sabotage, severely constraining….continue reading this article HERE.
Fikile Mbalula: {2012 – 2014} Fikile Mbalula was the Minister of Sport and Recreation from 2012 to 2014.
Known for his dynamic leadership style, he focused on enhancing sports infrastructure and promoting South African athletes on the international stage. Mbalula later served in other ministerial roles, including Minister of Transport.
Mother Hen
I am intrigued by your article – thank you for your efforts.
moonflower
Shongololo – millipede [sh-ong-o-loh-loh] A term used to describe a large brown millipede. It is derived from the isiZulu word ‘ukushonga’, meaning to roll up.