Please, Mr Mboweni, give us something to cheer about
Enticing the private sector to invest even a portion of its R850bn cash pile requires a sea-change in confidence
Two leading SA economists, Kevin Lings of Stanlib and Gina Schoeman of Citi, recently presented their outlook on the SA economy. Although they came from different angles, with Lings focused on employment and Schoeman evaluating the effect of sociopolitical developments, both consider the SA economy to be in dire straits.
The title of Lings’s presentation neatly sums it up: “SA trapped in a low-growth cycle, hurt by inept politics”. He examined job creation, the critical factor that created the longest-ever upturn in the US.
“Unless you create jobs, you just go nowhere”, says Lings. For the past decade, the US economy has added 200,000 jobs per month and the unemployment rate is 3.6%, the lowest since the 1960s...