Ray of hope in the gloom

THERE was little joy for South African consumers this week – despite the Reserve Bank’s decision to lower the interest rate, its first cut since last July and credit rating agency Moody’s revising its outlook on the country from negative to stable last week.

Instead, the VAT rate of 15% – one percentage point up from the historic level held for decades – kicked in along with news of a steep fuel price hike on Wednesday. Everything will cost more.

The one percentage point might seem incremental, but given that it applies to almost everything, its impact will be felt across the board. Likewise, the fuel price will further push up prices, given our dependence on road transport.

President Cyril Ramaphosa had little option but to increase VAT to fund the massive expectations created by his predecessor on the eve of the ANC’S watershed national conference in December that students from poor families would receive free education.

Ultimately, this could hold within it the key to unlocking this country’s intellectual and economic potential, breaking the chains of poverty that throttle the hopes and dreams of generations.

It should be welcomed. It was conceived in expediency, though, by a man about to be hung out on the gallows of public opprobrium. His gambit failed.

Jacob Zuma will shortly face charges for corruption stemming from the arms deal that led to his erstwhile financial adviser being convicted and jailed for 15 years. Other charges will follow from Deputy Chief Justice Raymond Zondo’s commission of inquiry into state capture, the kleptocracy encouraged and facilitated during Zuma’s tenure, hallmarked by the unprecedented rise of one family to unelected power and influence.

Looting of state-owned enterprises has not only cost us billions, it has seen the creation of a crony state: too many unqualified public servants employed through nepotism, mediocrity entrenched through tenderpreneurs.

It is sickening to think how many youngsters could have received free education and how many schools, hospitals and clinics could have been built had this money been spent, not stolen.

There is little to protect us from the vagaries of international markets, but we can make things worse, which is what we have done.

This is the price we have to pay for the 10 years we allowed this kleptocracy to take root. We have to rebuild, kick-start our economy, create jobs and hope.

The road will not be easy but the process has started.