The SA Institute of Business Accountants (Saiba) applauds finance minister Tito Mboweni’s plan to reboot the moribund SA economy.
The document – Economic Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa – is truly radical in parts.
For example, who would have thought we’d hear an ANC minister call for exempting small businesses from certain regulations, such as bargaining council agreements, which are little more than a monopoly enjoyed by big business and labour. The left-wing of the ANC will fight this tooth and nail – but Mboweni will have to face down the communists in his own party.
Common sense dictates that the automatic extension of bargaining council agreements to smaller businesses (which have to abide by agreements they are not consulted on) should never have been on the statute book, but once there it seemed it would remain there forever. Mboweni clearly understands what is holding the economy in its no-growth trap. This is why he wants to make it easier to create new jobs by removing the red tape.
What’s also encouraging is that he says the current economic trajectory is unsustainable. Business has been saying this for years, and it seemed as if government was tone-deaf to these arguments. Read more Accounting Weekly.