Key outcomes from Gigaba’s maiden budget speech

South Africa's Finance Minister Malusi Gigaba's recent Medium-Term Budget Policy Statement delivered distressing news about the country's public finances. The economic growth forecast was slashed to a mere 0.7 per cent from the previously projected 1.3 per cent for the year 2017. As a result, various stakeholders, including economists, political parties, and concerned citizens, have expressed disappointment and concern. In the aftermath of this bleak budget announcement, Sizwe Mbhele, the Director of Strategy at Business Leadership South Africa, joined CNBC Africa to share insights and opinions on the situation. During the interview, Mbhele highlighted that the business community echoed the prevailing sentiment of deep distress and urgency within South Africa. He emphasized the critical need for collaborative efforts to revive the country's ailing economy. Mbhele drew attention to the recurring narrative of financial challenges within the state-owned enterprises (SOEs), including escalating debt servicing costs. He stressed the imperative for enhancing the capacity and policy sustainability of these entities to avert further economic threats. One of the key concerns raised was the state of SOEs like South African Airways (SAA) and the South African Broadcasting Corporation (SABC), which continually require bailouts to sustain operations. Mbhele expressed reservations about relying solely on new boards or privatization as solutions for these entities. He cautioned against traditional approaches and emphasized the need for fresh strategies and competent individuals to steer these SOEs towards financial stability. Discussing the upcoming ANC elective conference in December, Mbhele underscored the significance of electing principled leaders with a long-term vision for the country's future. He called upon the ANC members to act responsibly, recognizing their duty to safeguard South Africa's legacy for future generations. Mbhele also extended an olive branch to the government, offering business leadership's expertise and cooperation in fostering policy coherence and practical solutions for the nation's economic challenges. In conclusion, Business Leadership South Africa's message is clear: decisive actions and collaborative efforts are imperative to address the dire economic situation outlined in the recent budget speech. The road ahead may be challenging, but with strategic interventions and responsible leadership, South Africa has the potential to navigate through these troubled waters and rebuild a stronger, sustainable economy.