During a post budget breakfast session hosted at Sun Meropa yesterday (Wednesday) morning, economists reflected on the 2020/21 provincial budget speech that was delivered by MEC for Treasury, Seaparo Sekoati in the Legislature on Tuesday and all were ad idem that the country and Limpopo as such, are facing hard economic times.
Thobeka Ncanywa, an Associate Professor in Economics at University of Limpopo analysed the 2020/21 provincial budget and said that the country and the province are facing hard economic times. The country is spending more money than it earns. This means that we must revert to borrowing because it is the only way in which government can source funds to attend to the needs of the people, Ncanywa reckoned and cautioned that borrowed money should be paid back at high interest rates and that it leads to long term commitments.
According to Ncanywa, one of the major challenges for the local economy is unemployment. “South Africa is at the top of inequality in the world and there is a lack of confidence in our economy due to challenges of water, electricity and drought and its results into lower exports and higher imports,” Ncanywa said and argued that the boosting of SMMEs can contribute much to the enhancement of the local economy.
“Limpopo has a huge potential to be prosperous if we can succeed into transferring our resources into unique products even for the global market and be competitive,” she said.
Ncanywa appealed to government to make use of local resources and to limit outsourcing. “Unnecessary outsourcing kills the local economy,” she said.
“We should demand value for money and make use of what we have to do as much as we can,” was Ncanywa’s closing message.
At time of going to print, Sekoati was about to lead a panel in a question and answer session.
Story/photos: BARRY VILJOEN
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