Tito, we need relief from the onslaught

ALL EYES will be on newly appointed Finance Minister Tito Mboweni as he gears up to deliver the Medium-Term Budget Policy Statement (MTBPS) tomorrow.

Mboweni will map out the government’s spending priorities for the next three years, and while everyone will be demanding a slice of an ever-diminishing cake, South Africa’s latest finance minister will have to justify how the government chooses to spend the public purse.

The MTBPS is coming at a time when the National Treasury – now more than ever – needs to restore business and consumer confidence as South Africa faces a difficult economic period.

As we stand, investors have lost confidence in the way the government has approached finance, and one of the biggest challenges will be to ensure that Eskom, which is bleeding financially, is adequately funded.

The National Treasury has also been grappling with credit rating agencies, where some have downgraded the country to below investment grade, which is considered junk status.

The economy is also currently in recession, and years of contraction in sectors like manufacturing have led to South Africa grappling with high unemployment, which currently stands at 27.2%.

And, added to the increase in the prices of commodities like petrol, those lucky enough to have jobs are forced to stretch their rand to make ends meet.

Also, what needs to be placed under intense scrutiny is black ownership and participation in the economy, ensuring that funds are put in place to propel black-owned businesses that are at the margins of lucrative economic opportunities.

Mboweni has been very vocal on the establishment of a stateowned bank to address the needs of many black South Africans who feel alienated by the big four monopolies in the banking sector.

After the widespread looting of VBS Mutual Bank that has been reported in the media over the past two weeks, Mboweni will have to restore confidence in the notion that corruption will be dealt with decisively in South Africa’s financial services institutions that are meant to service our dis-advantaged communities.