The World Bank has just adjusted South Africa’s projected economic growth to 0.9% for 2020 amid the uncertainty surrounding Eskom and load shedding. The 1.3% growth that the World Bank initially predicted for 2019 has now also been adjusted to 0.4%.
In spite of these realities, the ANC clings to the ideology that got us into this troubled position. President Ramaphosa explains what their approach to state-owned companies, so-called strategic assets, will remain:
“As we do this, we are clear that the state will retain ownership of all those state-owned enterprises that are strategic. This is so that these entities are able to perform the crucial economic and developmental functions that the market would not own be able to perform. ”
The government certainly does not intend to relinquish comprehensive state control and trust the free market. In the end, they placed SAA with terrible objection in business rescue – largely thanks to the continued pressure that Solidarity has put on them for years.
However, Solidarity is building better realities while the state is failing. By doing what we can with what we have, we are creating a free, safe and prosperous future.