“We believe the minister must announce a package of structural reforms designed to kick-start economic growth and create jobs in South Africa,” DA finance spokesperson, David Maynier, told a media briefing on Monday.

Maynier said these should include implementing secret strike balloting in the labour movement and increasing private investment in the country’s debt-ridden state-owned enterprises.

His colleague, Alf Lees, pointed out that collectively parastatals were covered by R497.6 billion in government guarantees, contributing significantly to the country’s credit rating.

“The fact is that net loan debt plus guarantees to state-owned enterprises is now an alarming 57.42 of GDP [gross domestic product] in South Africa.”

Maynier said whether South Africa liked or accepted it, ratings agencies were “circling us like sharks” and mattered.

He said the one development that would be viewed positively by all ratings agencies, would be increased economic growth over the medium term. To achieve this, and boost business confidence, the minister should look to structural reforms as two other approaches, namely fiscal expansion and monetary policy easing, were not options open to him, Maynier suggested.

However, he added, Gordhan would have virtually no control over the actual implementation of any structural reforms he announced. These would lie with other portfolios and the presidency, whose support the embattled finance minister lacks.

“What this means is that the minister effectively has both hands tied behind his back and is simply not able to ensure that structural reform to boost economic growth and create jobs is implemented in South Africa.”

Maynier said Gordhan’s fight-back response to his summonsing on dubious fraud charges showed that he was not going to back down in his fight against state corruption.

“The minister, therefore, has very little political space and even less fiscal space to respond to the economic crisis in South Africa.”

ANA