Misplaced euphoria over a hat trick of the same old policy contradictions
Last week's budget speech by the finance minister, Malusi Gigaba, was the third major policy pronouncement South Africa has heard since Cyril Ramaphosa became president of the country earlier this month. The first two were Mr Ramaphosa's state-of-the-nation address and his reply to the debate on that address a few days later.
Predictably, all three speeches have generated a mood of optimism, even euphoria. Some of the actions starting against skulduggery have reinforced this mood. Given the rejoicing at the departure from office of Jacob Zuma, this mood may last a while yet.
But, unfortunately, all three speeches were characterised by the same old contradictory ideas as we have heard year in and year out on these occasions.
Mr Ramaphosa promises "a major push this year to encourage significant new investment in our economy". Mr Gigaba says investors must be provided with "the certainty required to increase investment" since "job creation is critical", but he also promises "radical socio-economic transformation". The ease of doing business must be "improved", but all contracts above R30 million must be compulsorily subcontracted to "designated groups".
Mr Ramaphosa quotes Nelson Mandela as having said that the poor must become "their own liberators", while also hailing as "historic" the new national minimum wage that will price many of them out of the labour market. That new minimum, which comes into force on 1st May, also contradicts his promise to "reduce the regulatory barriers for small businesses". It further contradicts his plans to "re-industrialise on a scale that draws millions of jobseekers into the economy". These ambitious industrialisation plans are themselves then contradicted by the requirement that they be "underpinned by transformation".