Fill up petrol tank and follow silver lining on horizon
The latest fuel increase, which has pushed the price of petrol to a record high from midnight on Tuesday, has added to the nationwide gloom over the state of the economy and the ever-increasing cost of living. South Africans are feeling the pinch and as expected, all eyes turn to the government. Although in this instance the circumstances around the fuel increases are driven by external factors, such as a weaker rand and growing international oil prices, some of our economic difficulties can be placed squarely at the door of our government.
A case in point would be the 1% increase in the rate of VAT this year, which was largely informed by a decade of the mismanagement of our economy under Jacob Zuma’s leadership.
However, there is very little that our government can do about the external factors to the economy.
In September, some hailed the government’s populist decision to cushion consumers from a fuel hike with the price going up by 5c instead of 25c. The shortfall was funded from the state levy account.
But as this week’s fuel price has shown, the buffer was only temporary. For the first time the petrol price has breached the R17-mark.
While these are understandable pain points for most South Africans, we should not lose sight of the positive things that are happening in our country.
On Wednesday, Finance Minister Nhlanhla Nene gave evidence before the Zondo Commission on state capture. Whether Nene is clean or not will be for the commission to determine. At the same time, suspended SA Revenue Services boss Tom Moyane submitted an application to the Constitutional Court, challenging the legality of the various enquiries into governance issues at Sars. Moyane, a Gupta stooge, is also fighting his suspension.
There are positive moves to clean up the state and in the long run, South Africans will be the beneficiaries. On Thursday, President Cyril Ramaphosa and his cabinet will take part in a jobs summit, which will bring together various stakeholders, including organised labour, business and civil community to share ideas on how to drive job creation and ensure economic growth. While we may feel the pinch for now, at least there is a silver lining that our hardship will not last forever. Ramaphosa is trying.
There are positive moves to clean up the state and in the long run, South Africans will be the beneficiaries