The International Monetary Fund has criticised efforts by government to reform the economy.
JOHANNESBURG - The International Monetary FundA (IMF) has broadly criticised efforts by government to reform the economy.
It’s also says corruption in South Africa is hampering reforms needed to boost economic growth.
IMF's first deputy managing director David Lipton says cutting taxes and increasing government spending will not solve the country's growth problems.
He also says with regards to state-owned enterprises, improved governance and transparency in board appointments are needed.
Added to this, he says government support for state-owned entities is also a drain on South Africa's fiscus.
Turning to mining, questions have also been raised about regulatory uncertainty in the sector, which is also straining business confidence.
Overall, Lipton says the politics of the moment favour the status quo rather than sweeping changes needed to transform the economy.
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