SA’s 29,000 millionaire civil servants; SAA up for sale; rand rattled; Mboweni’s last Tweet; ratings downgrade looms; Brexit latest

Loading player...
South Africa’s budget deficit is set to come in at just under 6%, from the previously estimated 4.5% and last year’s 4.3%, it was confirmed when Finance Minister Tito Mboweni released his Medium Term Budget Policy Statement. The budget deficit gives the country similar financial ratios to Pakistan and Argentina. Mboweni has urged Parliament that “Clearly we need to do things differently - there is no status quo option.”
A staggering 29,000 public servants earn over R1m a year. To put this into perspective, the government wage bill has risen not far off 70% in a decade, with double the number of doctors, police officers, Members of Parliament and other civil servants who were earning the equivalent about 10 years ago, after adjusting for inflation. Mboweni has his eye on dramatically cutting this wage bill, and the spending perks associated with working for the South African government, including cars, phone and subsistence allowances. Also underscored on Wednesday is that not least of all because tax collectors will bring in a whopping R53bn less than expected; and state-owned entities continue to eat up vast chunks of taxpayers’ funds, with Eskom leading the way. The government is throwing more money at SAA - about R5bn. The SABC gets an additional R3.2bn. For the full details of the ‘mini budget’ and independent analysis on the statement and what’s next for South Africa, visit BizNews.com where you can listen to and read fascinating and useful insights from BizNews editor-in-chief Alec Hogg, who caught up with Mboweni after the announcements.
Some disappointing news for the 450,000 people who follow Finance Minister Tito Mboweni on Twitter, the finance minister has decided to give up Tweeting. He broke this news in a Tweet: “After a long thought process, I have decided not to do any original tweets anymore. I might, just might, retweet (not endorsement). I came to the conclusion that Twitter is no longer about its original purpose: ie to create a networked society. It is now an abusive platform.”
South African Airways is up for sale. South Africa’s government is talking with potential investors in the state-owned airline to ease the continuing burden the company puts on the national budget, reports Bloomberg. “I am pleased to learn that there are conversations involving South African Airways and potential equity partners, which would liberate the fiscus from this SAA sword of Damocles,” Finance Minister Tito Mboweni told lawmakers in Cape ...
30 Oct 2019 3PM English South Africa Investing · Business News

Other recent episodes

Dr Lennit Max: Non-racial, merit-based appointments of four new police commissioners

In his latest interview with Chris Steyn, former Western Cape Provincial Police Commissioner, Dr. Lennit Max hails the appointments of four new provincial commissioners. “This time around I am very pleased that the Acting National Commissioner in her wisdom decided that there's merit among people of colour.” He points out…
3 Aug 8AM 33 min

BN Daybreak: SA corruption probes; Trump’s Iran pause; SpaceX upcoming earnings, FIFA backlash

Today's BizNews Daybreak examines Japan’s US-coordinated currency intervention, OPEC+ production increases, and energy lobby opposition to US biofuels legislation. South Africa’s corruption commission delivers unprecedented accountability, while Donald Trump pauses planned Iran strikes pending rapid talks. Meanwhile, the S&P 500 opens at 7,489 and SpaceX prepares for a high-stakes earnings…
2 Aug 11PM 13 min

BN Daybreak: Apple earnings; Amazon AWS; RMB housing; Anglo’s SA exit; Tesla China sale

Today's BizNews Daybreak covers Apple's quarterly results, Rivian's SUV success, and Anthropic's AI breach, alongside a semiconductor rally driven by Microsoft and Oracle. Football federations oppose FIFA selling World Cup stakes, while Donald Trump claims a Gaza disarmament agreement. Meanwhile, Alec Hogg discusses Anglo American’s South Africa exit, RMB launches…
30 Jul 11PM 14 min