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BL PREMIUM
28 February 2021 – 05:03 ANDILE KHUMALO
Professor of economics at the Gordon Institute of Business Science and good friend Dr Adrian Saville often makes the point that the one thing business leaders should pray for is a growing economy, because it has the biggest impact on company earnings. I was reminded of this when finance minister Tito Mboweni told us that the economy contracted 7.2% in 2020 and is estimated to grow by only 3.3% in 2021 and average 1.9% in the following two years. In summary, if you run a South African business and are looking for growth, either find new markets with better growth prospects or start planning how you will eat other people’s lunch. Or both.
As hard as Mboweni tried to argue that this is not an austerity budget, it is littered with spending cuts. This begs the question: how will we achieve growth if the government is spending less? The answer lies in a partnership programme that has always been with us, though the time for it has never been so ripe, especially for entrepreneurs…
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