Redistribution of wealth does not drive economic growth. It is the creation of wealth that drives growth. To create wealth, we need to create jobs. High unemployment risks national stability and therefore requires significant spend in social grants. Grants are effective for the alleviation of poverty but are not effective for economic growth and job creation. The more government spends on social grants, the less money there is available for investment in economic growth; the less investment in economic growth, the more unemployment; the more unemployment the more social grant expenditure is required – this is the conundrum.

- Rob Wilkie, CFO Softline and Sage AAMEA

Do we really know the extent of government debt? South Africa’s debt to GDP ratio as listed by Eurostat is 34%. However if you include parastatal debt (the likes of Escom, Transnet, Denel etc) it is said to be more like 70%. Above 60% requires real caution so as not to fall into a debt trap. We are still in great shape when you consider Greece whose most recent round of debt restructuring was to bring its debt to GDP ratio down to 120%.

- Rob Wilkie, CFO Softline and Sage AAMEA

There is approximately R20 billion in debt following the much publicized Gauteng toll gate project. In his budget speech Pravin Ghordan announced a special appropriation of R5.8 billion against this debt, meaning that we should see the toll levy drop from 40c to 30c per kilometre. But does this really help us given his later announcement that the fuel levy would be increased by 20c. Feels like robbing Peter to pay Paul.

- Rob Wilkie, CFO Softline and Sage AAMEA

Do South African individuals have the highest effective tax rate in the world? Where else do you pay a marginal tax rate of 40% but still have to fund your security, healthcare and education

-Rob Wilkie, CFO Softline and Sage AAMEA