A few minutes ago I listened with
horror as the SAA employee representative said the strike was a success 😳 SAA is technically insolvent, no bank can loan it
money yet employees are striking for an 8% salary increase 🤷🏿♂️SAA has a government
guaranteed debt of almost R13 billion and the government just gave them R5.5
billion. Elsewhere in South Africa most taxpayers who are funding SAA were
lucky to get even 2% salary increase, the rest are unemployed or facing
imminent retrenchment.
Do we really need
SAA? My opinion is it should be shut permanently so that we move on to Eskom,
PRASA, DENEL, SABC, huge civil service wage bill. Eskom has a debt of R400
billion. Public sector wages consume at least half of the budget and due to
powerful unions that bill is increasing much higher than inflation. The economy
will only grow by 0.5% this year. My unsolicited advice from someone who saw
the unraveling in Zimbabwe from a similar situation, if you can leave the
country please do. For my Zimbabwean friends in South Africa please have some
assets in Zimbabwe before the fan hit the sh*t.
The politicians in
South Africa can’t grasp the seriousness of the situation, they are planning to
launch National Health Insurance another financial disaster waiting to happen,
they must just look to Britain how this is an unwise move. My prediction is
that South African government debt will be downgraded. Eventually interest
rates will increase, the Rand will devalue making the foreign debt more
expensive to service. This government will most likely increase VAT rates, more
fuel levy including Road Accident fund levies which are increasing much higher
than inflation. By the way RAF debt is more than R26 billion.
The middle class in
South Africa is in a fix, medical aid contributions are higher than pension
fund contributions and now you need Gap cover 😢, you have to pay
for private or semi private school education, levies at complexes due to high
crime rates. The fuel price will continue increasing due to RAF and very high
government tax on fuel. The public transport is non functional. Oh I almost
forgot there is E-toll debt. I really regretted missing the window of
opportunity to emigrate to Australia after I arrived in SA around 2007 to 2010.
Some of my friends are trying Canada good luck on them, personally I wouldn’t
survive in that weather.
With the increasing
number of unemployed, I expect the support for EFF to keep on growing. I like
EFF leaders but their economic policies keep me awake at night. I fear fascism
taking hold in South Africa due to lack of transformation and inequality. The
unemployment for whites is around 6% and they earn three times the average
African, yet 52% of African youth are unemployed 😢
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