The Aloe Ferox is a hardy South Africa succulent that Tito Mboweni presented to President Cyril Ramaphosa in May 2019 and used again during his mini-budget speech in Parliament today to explain the present situation in South Africa saying that we should turn back to ‘our brothers and sisters in Africa’.
The cynics in SA will say that the Aloe Ferox also represents all that is bad in politics today – slow growing, prickly, sour, inward focus and not sexy enough to attract much investment.
The real question is; “Did Cyril really look after his Aloe Ferox and make it grow or did he consign it to the rubbish heap like the citizens of South Africa denied simple service delivery?”
Ethiopia’s 7% growth came in for praise whilst South Africa’s FLAT growth came in for a looooong explanation.
SA’s economy was described as a “mixed picture with some good”. Growth is projected to slowly rise to 1.7% in 2022 – “A picture which is not good at all,” said Mboweni.
“We are falling behind schedule in the race for 5G.” 5G is essential for 4IR which started in 2012 so cynics would point out that we are NOT even in the race!
Mboweni highlighted President Ramaphosa’s present two difficulties – a water license took 3 years to be granted and permission to flatten ground in front of his property for parking in Cape Town is taking too long. Welcome to FIRST WORLD problems whilst your citizens struggle to get access to ALL of those and more Mr President.
Growth is not enough – a well functioning and efficient revenue collection agent is also required.
SA relies on honest taxpayers said Mboweni – can you hear taxpayers asking corrupt politicians to set the example?
In a veiled threat to taxpayers, Mboweni said, “Render unto Caesar what belongs to Caesar otherwise Caesar will break your bones!”
Money that could be used for Service Delivery will go here:
R26 Billion to Eskom
R11 Billion to several smaller SOE’s in ‘financial distress’
R435 Million for student housing.
National debt exceeded R3 Trillion Rand and is expected to rise to R4.5 Trillion in the next two years. Debt is expected to exceed 7% of the GDP by 2023 – at a flat lining growth rate we are RUNNING backwards.
The understatement of the last 25 years by Mboweni was; “The consequence of not acting now will have grave consequences for South Africa.”
R6.3 Trillion is being spent by Government. At the end of 3 years debt servicing costs will be bigger than spending on health and education.
“We need to find an additional R50 Billion per year over the next three years.”
Spending on public sector wages – 29 000 public servants plus all politicians EACH earned more than R1 Million per year. The average government wage increase was 6.8% – over 2% more than inflation.
For the foreseeable future politicians salaries will be frozen, the cost of official cars will be capped at R800 000 VAT inclusive, a new cellphone dispensation will cap the amount claimable, all domestic travel will be on economy class, the Minister of Finance will make appropriate decisions on travel spend for all arms of the state.
The cynics in South Africa will equate a Salary Freeze with MORE Corruption.
We cannot continue to throw money at Eskom said Mboweni saying that Eskom must: run their current plant and equipment better, achieve otther operational efficiencies including managing their cash better.
On the way forward with failing SOE’s Mboweni said; “Any form of support to state owned enterprises will be in the form of LOANS which must be repaid with interest.”
Turning to SAA Mboweni said that SAA is in conversation with other equity partners which may relieve the government of that burden.
Mboweni urged the nation to pay for services rendered, including eTolls.
Management and their teams should not receive bonuses when they fail to meet targets – applause.
The state can use it’s resources better- for example R900 Million of food per year is bought by the SADF who have now embarked on a project to now buy this food from NEARBY suppliers.
Mboweni has promised to review the Procurement Act saying that Judge Davis would probably be appointed to the commission.
The SA Reserve bank gives 90% of it’s profit to the fiscus – R200 Million last year.
“We trust that we have the support of the entire house,” said Mboweni.
Alan Straton
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