RAYMOND OBERMEYER: Tax windfalls are no cure for an ailing economy

RAYMOND OBERMEYER: Tax windfalls are no cure for an ailing economy

Picture: 123RF/RATTANASIRI INPINTA SA requires creative and innovative solutions to put the economy back on a sustainable financial path. Structural reforms are needed to enable a more business-friendly environment aimed at encouraging investment to grow the economy.

The country has benefited in recent months from a commodities boom, which provided an unexpected tax windfall. This has resulted in an unprecedented trade surplus — meaning more capital has flowed into the country than out of it — that has helped to underpin the rand, contain inflation and keep interest rates at historically low rates.

The state’s finances have benefited from the mining […]

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