Less corrupt government vital for SA, says Jonas

SOUTH Africa should be obsessed with constructing a stronger and less corrupt government, Deputy Finance Minister Mcebisi Jonas said yesterday.

This was one of three obsessions he said we should have.

“We need that all South Africans will die and stand for a few things,” Jonas said at the Association of Black Securities and Investment Professionals conference in Sandton.

Another focus should be on renewed and inclusive growth.

“Part of the new national obsessions that we need to build is an obsession towards renewed growth, inclusive growth as well as vigorous industrialisation, and reduce the constraints that prevent us from growth,” Jonas said.

“The second national obsession should be [with] constructing a government that is stronger, more capable and less corrupt.”

The third obsession should be education and skills development, which was needed to satisfy the first two obsessions.

Jonas said spending on education was already very high and probably needed to be more focused on quality.

Jonas said South Africa’s borrowing costs would likely double or triple if ratings agencies downgraded the country’s debt to sub-investment grade.

He said debt servicing costs were the fastest-growing item in October’s medium-term budget and, along with low growth, would force the government to cut welfare spending.

S&P Global Ratings and Fitch both rate South Africa’s debt on the lowest investment grade level and are due to give their next reviews next month. – BDlive