Cape Town - A Fin24 user and small business owner agrees with businessman Herman Mashaba's prognosis that SA's labour laws are an economic stumbling block.
In reaction to a BizNews interview with Mashaba on the state of the economy and the legal action that he’s taking against the labour laws of the country, Fin24 user Arnold Muscat says he could employ more people under different laws.
According to Muscat the ruling party is not interested nor have the will to change.
He sums up the South African situation in 10 points:
1. SA is a Greece in waiting. Expenses exceed tax revenues.
2. We have millions of illegal migrants who are also looking for work besides the 36% of unemployed South Africans.
3. SA spends a massive percentage of GDP on an education system that fails dismally.
4. Unions demand minimum wages for mine workers of R12 500 when teachers and many self-employed individuals earn less. Basic conditions of employment do not apply to the self-employed!
5. The Eskom national disaster.
6. Volatile exchange rate, that looks like a 'one way bet going south'. Most if not all of our “loans” are US dollar based and it looks like SAA is trying to get out of contracts for new airplanes again.
7. Impending interest rates hikes.
8. Not much 'SA silverware' to sell - Telkom, Ports etc. Corruption.
9. Create 100 African billionaires by giving them R1bn start-up capital. Japan and other countries are not impressed.
10. China will “own” SA in the near future with dire consequences, exporting food, sending Chinese to work and live here and loss of ownership of SA resources.
Disclaimer: All letters and comments published in MyFin24 have been independently written by members of the Fin24 community. The views are therefore their own and do not necessarily represent those of Fin24.