Economist claims Zuma's 2nd term cost SA R470 billion

Economist claims Zuma's 2nd term cost SA R470 billion

- Economist Dennis Dykes says the Zuma administration dealt a serious blow to the economy

- This was mostly due to corruption and poor policymaking

- This means that there will be even more pressure on Finance Minister Tito Mboweni to deliver in his budget speech tomorrow

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An economist has said that Jacob Zuma's last few years in office cost the country R470 billion.

Analyst Dennis Dykes has alleged that the Zuma administration resulted in a major drain on the economy, as a result of state looting, mismanagement and bad policy.

This comes after a report last year showed that South Africa's economy could be 30% bigger than it currently is had Zuma led the country in a different direction.

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Dykes added that from 2014 onwards South Africa took a major economic knock under Zuma, with R140 billion in lost tax revenue alone, according to Business Live.

In fact, the money lost as a result of the Zuma administration is more than Eskom's current debt, which is threatening to destroy the power utility.

Dykes' dire assessment of the last few years comes ahead of tomorrow's budget speech by finance minister Tito Mboweni. Along with Cyril Ramaphosa, Mboweni has been trying to drum up foreign investment to rehabilitate South Africa's sluggish economy.

Reportedly, the pair have drawn in $35.5 billion from countries like the UAE and companies like Mercedez-Benz, with $20 billion expected to follow later in the year.

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Despite this, many experts' predictions for South Africa's economy remain pessimistic. Unemployment is still high and economic growth is slow. Additionally, the current energy crisis at Eskom threatens businesses and productivity.

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Source: Briefly.co.za

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