Eric Naki
Political Editor
4 minute read
24 Feb 2021
5:05 am

Will Mboweni’s budget lift SA out of its financial pit?

Eric Naki

Bold reforms needed as the ‘Ramaphosa Effect’ wears thin.

Finance Minister Tito Mboweni delivers the medium-term budget in Parliament, 28 October 2020. Picture: GCIS

Finance Minister Tito Mboweni has to plan to climb a mountain today. He has to plot a path to take the country back to the economic heights of the Madiba and Thabo Mbeki years – out of the financial pit into which it was plunged during the Zuma administration. The steady downward trajectory of the South African economy post 1994 is obvious: Under Nelson Mandela, the average annual growth of gross domestic product was 2.7%; unemployment was 25% and government debt (including that inherited from the apartheid era) was 48% of GDP. Under Mbeki, GDP growth averaged 4.1% annually; unemployment...