Mboweni issues warning: Implement economic reform or it's game over

Mboweni issues warning: Implement economic reform or it's game over

- Tito Mboweni has issued a series of warnings against failing to implement economic reforms

- The Finance Minister says it will be 'game over' for South Africa if the nation doesn't push ahead

- Mboweni warns that the country is running the risk of being downgraded to junk status

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Finance Minister Tito Mboweni has given South Africa a firm warning on the nation's economic status.

Taking to social media, the politician shared his concerns for the financial wellbeing of the country:

"If you cannot affect deep structural economic reforms, then game over! Stay as you are and you are downgraded to Junck (sic) Status!! The consequences are dire. Your choice," Mboweni warned, without specifying who he addressed."

READ ALSO: Eskom drama sees World Bank slashing SA's economic growth prediction

Mboweni referred interested citizens to the National Treasury's "Economic transformation, inclusive growth, and competitiveness: towards an economic strategy for South Africa" document.

Fin24 reports that the discussion document had recommended reforms that are believed to have the potential to create a million job opportunities.

The proposals detailed in the document included:

  • Introducing private competitors to Transnet
  • Metros taking control of rail
  • Exempting small businesses from industry wage agreements
  • Reducing red tape for companies by 25%

While businesses welcomed the document, the minister faced resistance from ANC members and labour allies.

Nevertheless, the draft paper was partially adopted by the ANC's NEC late last year and subsequently published as part of the mid-term budget policy statement.

Briefly.co.za reported that the World Bank cut South Africa's economic growth forecast to under 1% for this year.

Eskom and its persistent load-shedding was one of the largest contributors to this downgrade, along with infrastructure concerns.

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Source: Briefly.co.za

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