JOVIAL RANTAO THE Finance Minister of South Africa Tito Mboweni has sounded strong alarm bells about the country’s soaring national debt amid an economy that is expected to contract by 7,2% in 2020, as a result of the COVID-19 pandemic.  Presenting the 2020 Supplementary Budget in response to the dramatic economic downturn brought about COVID-19, Mboweni said: “But debt is our weakness. We have accumulated far too much debt; this downturn will add more. This year, out of every rand that we pay in tax, 21 cents goes to paying the interest on our past debts.   This indebtedness condemns…

STAFF REPORTER SOUTH Africa’s 278 municipalities, which are at the coalface of the fight against the COVID-19 pandemic, are to receive R20-billion to help them deliver services and expand services to defeat the virus. Finance Minister Tito Mboweni announced the special allocation in his supplementary budget speech which has been presented at a virtual sitting of the National Assembly.  Mboweni said local governments received the additional R11-billion because they were at the heart of the government's response to the COVID-19 pandemic. “A further R9 billion will be reprioritised within allocated conditional grants to fund additional water and sanitation provision and…

JOVIAL RANTAO SOUTH AFRICA’S finance Minister Tito Mboweni has unveiled bold multibillion measures which contain the government's response to the economic crisis imposed by the onset of COVID-19 pandemic, which has infected over 100 000 and led to death of over 2000 people. Mboweni, who presented his 2020 budget in February, was forced to present the supplementary budget because of the economic crisis brought on by COVID-19. The measures contained in the supplementary budget are in addition to the R500-billion economic package unveiled by the President Cyril Ramaphosa after the lockdown. Presenting a special supplementary budget in a virtual sitting…

OLUDAYO TADE SIX years ago, a cashless policy became fully operational in Nigeria. The aim was to encourage electronic transactions with a view to reducing the amount of physical cash in the economy. The logic was that this would minimise the risk of cash-related crimes. But a major downside of the policy has been pervasive electronic banking fraud (e-fraud). Although the cashless banking system was designed to foster transparency, curb corruption and drive financial inclusion, it’s threatened by the growing perpetration of fraud. About N15.5 billion was lost to bank fraud in 2018. About 60% of the fraud was perpetrated…

DAVID FRANCIS and IMRAAN VALODIA The full economic damage caused by COVID-19 and the lockdowns is uncertain. It will take several months, indeed years, to have a better understanding of where the damage has occurred and how severe it is. While the magnitudes are uncertain, it is already clear that we will see a sharp decline in incomes, rising unemployment, and widespread business closures. South Africa, in particular, needs to keep a close eye on all aspects of the labour market so that policy responses can support those most in need. Recent work has highlighted the enormous impact of the…

AFRICAN MIRROR CORRESPONDENT AFRICAN countries are using their collective economic muscles to use the multibillion procurement economy created by the devastation of COVID-19 to help rebuild the economies across the continent.  The African Union has established the Africa Medical Supplies Platform (AMSP), a single marketplace to enable the supply of COVID-19-related critical medical supplies. The move is expected to boost the drive to buy “Made in Africa” goods.  The AMSP was launched by AU chairperson and South African President Cyril Ramaphosa. The unique facility is designed to unlock immediate access to an African and global base of vetted manufacturers and…

JOVIAL RANTAO TOUGH times call for tough decisions. Nissan, one of the world’s leading vehicle manufacturers, has unveiled a bold and tough plan to not only respond to the difficult conditions brought by COVID-19, but to grow the multibillion business. When he presented his group’s annual results, Nissan global chief executive officer Makoto Uchida tabled a robust four-year plan to achieve sustainable growth, financial stability, and profitability by the end of fiscal-year 2023.  Nissan global chief executive officer Makoto Uchida Uchida said the scalable plan, which involves cost-rationalisation and business optimisation, will shift the company’s strategy from its past focus…