The year was eventful to say the least testing the South African economy to its absolute limits. Reflecting on the past 12 months the main issues which stand out in my mind are somewhat interrelated: Here is a thread:
Avoiding the downgrade
Moody’s was the last of the ratings agencies holding us up from a downgrade to ‘Junk Status’. The outlook is one of “Negative” leaving with our backs against the wall for 2020 as we have the year to turn our ship around and provide positive evidence that our economy is on the mend. A tall order as we have so much to do, especially with our SOE’s.
Keeping the lights on
This leads to the huge crisis we face in bringing Eskom from out of the dark and into the light. Drastic action has to be taken from every resource we can possibly muster up to keep the lights on for 2020.
Prescribed assets
The one resource being ‘eyeballed’ by our leaders is a huge pot of cash found in our retirement industry. One of the largest in the world. Instead of having to borrow money to bail out the failed SOE’s assets could be directed by regulations to fund them. It is a question of a ‘hand up’ or a ‘hand out?’
Adopt a champion attitude
2020 will be a huge challenge and we will need every bit of resilience and cooperation from all corners to get on top of economy. The Springboks showed South Africa what can be achieved when we pull together against the odds. Hopefully we can pick up the ball they passed on to our leaders and turn us into champions.