South Africa was not in a great position to start off with. Downgrades from all three major credit rating agencies just in time for Covid to hit us with a double whammy. A triple whammy more like it after years or financial corruption and mismanagement by the ruling party.
Government through two other arms are now going to make life a lot more difficult for those of us who were blessed to hang onto some form of livelihood. Municipalities are about to hit consumers with a hefty hike in rates and taxes, despite the fact that NO GOVERNMENT EMPLOYEE (yep, not one) has either lost their job or had to take a pay cut during this time frame unlike the rest of private sector populace.
Eskom does not like to be outdone and now that one of NERSA’s judgments on tariffs have been undone, they are looking to claim back some lost revenue from the very same people who have suffered under their gross mismanagement.
This may go down as the year of the straw that broke the camel’s back. A rapidly diminishing tax base, excessive above inflationary increases in an underwhelming public sector and the various SOE’s. Rumour has it that the 58c of every tax payer Rand that is being spent on public servant salaries is about to increase to 61c to every Rand. Basic math will tell you this is not sustainable despite what the unions would have you believe. The same unions that are facing gross mismanagement and are unable to produce financials and find missing money from their own ‘investments’.