South Africa’s stagnating economy and exponential government spending mean that 2024 could be the year its cash reserves run dry, according to independent agricultural economist Fanie Brink.
“Government spending increases every year uncontrollably, but it does so at an exponential rate. That will also increase the debt burden to the same extent in the near future,” Brink was quoted as saying by the South African news website.
He added that “The only solution to these problems is a total return to a capitalist economic system, which encourages healthy growth.”
According to the economist, with more than 40 years of experience in the agricultural industry in South Africa, “The chance that the ANC government, as well as the politicians and the ‘economic specialists’ will ever understand and accept it, is clearly not a strong possibility.”
That is why the ANC government “will only need at most another five years to destroy the economy and the country,” he said.
Brink also criticized suggestions by Wits University Professor Janie Rossouw that the country would run out of money by 2042. Rossouw was being too optimistic, he said, adding it would actually be a luxury for South Africa to make it to 2042. Such a projection provides the ANC with a comfort zone and actually gives a better perception of the economy than what he believes to be true.
Rossouw earlier told the country’s Standing Committee on Finance that Mzansi (an informal name for South Africa) has 23 years left before it all goes to hell in a hand basket. The professor explained that the “exorbitant” cost of ministries is one of the most punishing features of the national budget.
South Africa’s leftist Economic Freedom Fighters (EEF) party has also been calling for the government to eliminate deputy minister positions.
It pointed out that a total of 35 people in those positions make up a wage bill of R68,950,000 a year (almost $5 million). Over a five-year term, that would amount to almost R345 million ($25 million) which is just under the total amount President Cyril Ramaphosa released for a stimulus package last September.
Scrapping deputies could end up saving the country the near-equivalent of a domestic bailout, the EEF said.