No money, no jobs, no joy
Tito’s stop-gap measures a travesty
It is the last day of the second month of the year. The schools are open and the matriculation results are finally out. It’s been a topsy-turvy 12 months.
Our broke national breadwinner, garlic and sardine king, Tito Mboweni, tried to put lipstick on our broken piggyback this week when he presented the budget.
The year 2021 is a mirror image of the pandemic-buckling 2020, though there’s hope of return to normality with the discovery of vaccines. We had hoped the virus would disappear on the stroke of midnight at the end of the year, but we lacked the scientific basis.
The virus does not have a deadline. It’s determined on its path of destruction and wreaking havoc thanks to our lacklustre response and our false hope.
Our country was broke even before the coronavirus made its debut on our shores. Our economy hit junk status before patient zero arrived bearing the airborne pestilence. However, for the man on the street – the beneficiary of the R350 Covid-19 grant – junk status has been their daily reality even during the years of green shoots and plums.
The one baffling factor has been the exodus to this broke country by nationals from the four points of the compass. Europeans, Asians, Americans and fellow Africans love this country.
I watched Mboweni present his bad-news budget during the week and couldn’t help but admire his audacity to draw a silver lining on a dark cloud. I was, however, not bowled over by his performance given that he is a politician despite his economist credentials.
The avocado farmer is a skilled grower and producer, but when it comes to his public employment, the seeds are not bearing any fruit. Despite his optimism, the Finance Minister akanamali.
The economy is on a negative trajectory and he is indebted to many mashonisas
whose interests are burning a hole in our fiscus. That explains his penchant to increase sin taxes to pickpocket those of us who drink and puff, as if we did not suffer enough when booze and tobacco was banned and prices skyrocketed on the back market.
However, all is not lost. The vaccine holds so much promise and soon it will build our resistance to the virus and we will roll our sleeves and get back to regular economic activity. The stadiums would brim with spectators and the hawkers would make a killing. Mboweni has allocated R12.6-billion to stem the youth jobs bloodbath.
It’s up in the air whether the stop-gap measures can alleviate poverty, but considering that we have a young population wasting away at street corners and in backrooms instead of fueling the economic furnace, is a travesty.
Unemployment remains a problem and the joke is that we have a department of employment and labour. Essentially, Minister Thulas Nxesi presides over a phantom department wherein employment is a nasty rumour to fool the unemployed masses.
Many an economist and even the iconic Nelson Mandela clarified that it’s not the government’s mandate to create jobs. Your job is your business.
Covid-19 has left a big hole in Gautrain’s coffers with the Gauteng provincial government set to bleed millions of rands, data from National Treasury show.
“In 2020/21, the private operator [Bombela Concession] is expected to lose about R700-million and the provincial government’s patronage guarantee is expected to exceed its current budget by R400-million. The Gauteng department of roads and transport is expected to absorb this amount,” reads the budget review.
“The number of people using public transport is projected to remain below pre-covid 19 levels for some time as a result of slow economic growth and the probability that more people will continue to work from home.”
The Gautrain has a “patronage guarantee” as part of the public-private partnership agreement signed with Bombela. The private operator is partly liable for losses if revenue drops below a certain amount.
Bombela was awarded the tender to build, maintain, operate and partially finance the Gautrain rapid rail system. The company initially enjoyed a “patronage guarantee” of R360-million a year paid by the Gauteng provincial government.
That payment has now ballooned to an astonishing R1.5-billion a year.
The Gautrain Management Agency (GMA) and Bombela said in joint written responses that all was not doom and gloom. “Since the start of the pandemic, the Bombela Concession Company’s income has reduced by approximately R600-million to R700-million over the period. The company is financially sound.
“The impact of Covid-19 is expected to shrink into the future and, accordingly, Gautrain ridership is expected to increase.
“We believe that public confidence in public transport is critical to its long-term sustainability and this will return as long as the Gautrain maintains its standards of excellence. We are also looking at expanded bus routes using more midi-bus in partnership with the minibus taxi associations that work with Gautrain, so that we can connect with more people who don’t have the luxury of owning cars,” they said.
GMA is an agency of the Gauteng department of roads and transport and is tasked with overseeing the operations of the Gautrain. The agency early this month placed the procurement of the Gautrain additional rolling stock and depot enhancement project on hold until further notice.
The decision was taken in the light of the significant impact that the Covid-19 pandemic and lockdowns have had on passenger demand on the Gautrain.
In the last year, Gautrain spent just under R1-billion on South African materials, thus maintaining jobs in critical supply chains and industries. Over R495-million was spent on blackowned companies. Of this, R37-million went to black-owned SMMES. Gautrain sustains about 11 000 jobs.
Sujeet Morar, principal at global management consultancy Kearney, said a shift in economic history and the Covid-19 are ushering in a veritable fourth industrial revolution for the sector.
Passenger demand for Gautrain has plunged due to Covid-19
Pepe Marais is no ordinary Joe, lest you’re fooled by the company he has built into one of the most formidable integrated and communications group – Joe Republic.
The Cape Town-born Marais has come a long way since the beginning of his entrepreneurial journey as a newspaper delivery boy.
The business mogul credits his success to 20 habits, a journey that has resulted in a book: Growing Greatness: 20 Habits that break habits.
“Through my teetotalling years, I have increasingly experienced a significant improvement in my critical thinking, my creativity, my energy and my drive … my liberating water drinking has played its part in our business going into flow, it has contributed to our high-performance culture,” Marais reflects on his alcohol-free journey since 2007.
The success and transformation of Joe Public talks to the creativity and energy the group is known for.
“In 2009, a few months after buying Joe Public back from the Us-based shareholder, who back then owned 100% equity, the company hit a massive brick wall amidst the second worst recession in our living history – the worst being the challenge the world is facing today.
“But somehow, in a pitch against Ogilvy, Joe Public managed to win a piece of Us-funded business, enabling us to create and launch the Brothers for
Life brand.
“This period of the company’s journey led it to unearth the true purpose of Joe Public, beyond profit.” Marais said he was mostly proud of the transformation journey the business had undertaken under his tenure.
Sixty percent of the company is in black hands – making it the largest majority black-owned, independent agency group in South Africa.
“It took us two years to find the right partners to help us finance this transformation deal and in February 2020, Joe Public United became the largest majority black-owned proudly South African communication group, with 60% black ownership and 40% of the company remaining in the hands of the founding shareholders,” said Marais.
He confesses that his success through the years has brought him untold wealth and comfort, not that he makes a fuss about it.
“The only way to create new wealth [for everyone] is to create more value. All you need to do is to make value. Instead of waking up and thinking you must make money, you should appreciate that money is the by-product of value.”
Marais determination to inspire people to change bad habits is best captured in the preface of his latest book.
“And if ever there was a reason for exchanging limiting habits for liberating ones, it would be for the sake of hundreds of thousands of people who have lost their lives throughout this spell, who will not be as fortunate as we are to lay eyes on a new world post Covid-19 crisis.”
It took us two years to find the right partners to finance this deal
The little financial relief provided by Finance Minister Tito Mboweni might go down the drain if you continue splurging money on drinks and taking unnecessary trips.
Making your money work for you should be at the top of your must-do list.
National Treasury took steps to reduce the tax burden on lower and middle-income households.
If you are earning above the new tax-free threshold of R87 300, it means you’ll have at least R756 more in your pocket during the next tax year.
André Wentzel, solutions manager for Sanlam Retail Affluent: Recurring Savings, said the tax relief gives South Africans a chance to reprioritise their finances.
“Now is the time to re-examine money matters to feel in control and cut expenditure where possible.
“Disposable income gains from the personal tax relief may be jeopardised by significant spending on sin tax items and fuel levies,” said Wentzel.
“Be aware of the 8% increase in specific excise duties on tobacco and alcohol.
“A 340ml can of beer will cost 14c more, a 750ml bottle of wine 26c more, a 750ml bottle of sparkling wine 86c more and a 750ml bottle of spirits R5.50 more,” he said.
Quitting alcohol is hard and for some people that is not even an option – but there are ways to minimise the impact it will have on your financial wellbeing.
Tips for not drinking away your money:
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Prioritise happy hour. Drink at home.
Prioritise a social place where you’re allowed to bring your own drinks. • Join a wine club.
Those who like cruising around town will also feel the impact on their wallets.
From April, fuel levies will increase by 27c/l, Mboweni said as he again turned to motorists to squeeze funds for the fiscus.
While we cannot control fuel levies, we can control how far we stretch the petrol rand.
Consider the following tips to save money on fuel:
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Inflate tyres to the correct pressure: If you can’t tell from how your car handles that your tyres aren’t the right pressure, then your fuel economy should tip you off.
Use the smaller of two cars: If your household has two or more cars, use the more fuel efficient one wherever possible.
Get into the habit of using the other bigger cars only when necessary.
• Try to avoid prolonged idling: Running the engine at idle consumes roughly half a about 4l of fuel every hour. Not only that, it causes more pollution. If you are waiting for someone to get in the car for longer than two or three minutes, you are far better off switching the engine off than leaving it running.
“It’s about budgeting properly to secure your financial future. It will be a long road, and you may have to make sacrifices along the way, so celebrate each small ‘win’ that takes you closer to achieving your goals.
“Live with confidence, have a clear picture of what you want the future to look like and take deliberate steps towards this,” said Wentzel.
Tiger Woods, ag shame. Just as he recovered from the nasty bad-boy scandal and regained his GOAT status, a car crash again sets him back. Some may think ankle injuries are child’s play, but looks like Woods will be out a full two years as his extensive injuries need to heal. But like the champ that he is, Shwa knows he will come out even stronger.
I am not sure who is more desperate for fame between Ayanda Ncwane her and her brother, Phupho Gumede, who also enjoys styling, we hear. But it was funny to watch them act as if they were famous. The place was packed with influencers and creatives without a single celeb in sight – scared of Covid? Spotted influencer Candice Dube looking fashionable – thank heavens.
• Mr President, so it took a Q&A with Sanef to recognise journalists as “essential”? Must be that ENCA bunch that made you doubt, neh?
The function held at Mall of Africa was filled with familiar fashionistas, so I was pleasantly surprised to see Ayanda Ncwane, who was stunning in a dress that looked familiar, if I’m not mistaken, as it’s human to err.
• Shwa is going to have a hard time going to ebhayi again. The Friendly City has just turned a finger on Moi with its unpronounceable name. Gqerberha it is. Shwa will just once again blame apartheid for the inability to click. But guys, calm down with these name changes. Build school toilets or something. Nxh!
• Condolences: Shwa commemorates the memory of gorgeous bad boy Ceagan Arendse, who succumbed to depression. Shwa was in awe of the young man who showed off his talent in Suidooster and Arendsvlei. Rest well.