On the eve of credit ratings agency Moody’s next decision over South Africa’s economic state, it is very clear that the ANC’s policy have finally forced the country into an economic quandary.
“Despite much input and constructive suggestions from knowledgeable persons and institutions, the ANC sticks to its policy,” says Louis Meintjies, the President of TLU SA. “Now the harsh reality is becoming too expensive for the country. The ANC is busy demolishing the future of South Africa.”
TLU SA’s viewpoint has always been that the rules of the economy cannot be changed. When politics enter the game, the economy will always trump it. The cost of such a battle becomes too high when an unrealistic set of policies are created.
A successful economy is based on investor’s confidence. It leads to an economically viable environment for entrepreneurs to do business with the goal of financial profit. The success of such a situation is the only solution to establish economic growth.
“The proverbial cake gets bigger and this creates the capacity to solve serious issues,” says Meintjies.
The ANC have, since taking over the reigns of a properly functioning country, driven out key expertise with affirmative action, looted and failed to maintain the infrastructure and mechanisms needed to keep it working and in doing so, push South Africa onto the downhill slope to a failed state.
“It is perhaps time to go back to Economics 101,” says Meintjies. “As long as the ANC keeps going on this track, there can not be an outcome to the benefit of the residents of this country.
“Scant capacity is created to take the country to success,” he says. “The inability to govern, a shortage of expertise, corruption on every level of government and blame shifting are only a few of the aspects that have become endemic of the ANC rule.”
What is the solution?
Government should review its economic policy and should in no uncertain terms declare that private ownership and the free market system creates its base.
The ANC’s meddling in the economic process cannot lead to sustainable success, in fact, the opposite is true.
Put an end to the policy of black economic empowerment and rather focus on the economic empowerment of all South Africans, creating the opportunities to apply the expertise so needed to turn this ship around.
“Moody’s is on the verge of downgrading South Africa again,” Meintjies says. “Somewhere the results of talking and promises about the economy should be evaluated against what is happening in reality.
“TLU SA supports the many rationally thinking economists who have for the longest time warned that what the ANC is implementing, along with statements over expropriation without compensation and the nationalisation of the Reserve Bank, is not sending a message of confidence to grading agencies. How can it not influence South Africa’s credit ratings negatively?
“Are South Africa’s voters and the growing group of unemployed citizens finally going to have the insight to realise South Africa can literally not afford the ANC’s policies, in the lead up to the elections on May 8th? It has simply become too expensive.”