Tito Mboweni to balance economics and politics
New minister must mend economy but note election pressure
Tito Mboweni is no pushover. His reputation precedes him and this week he received global acclaim when he took over as SA's 7th finance minister in five years after Nhlanhla Nene's resignation. But he will have little time to bask in his new role as he is confronted with the challenge of fixing a broken economy amid deteriorating global markets and trade conditions for emerging-market nations. Mboweni is set to deliver the medium-term budget, a plan of strategic spending priorities over the next three years, later this month - mere months from next year's tightly contested national elections, a factor that may bear on this budget. SA's borrowing capacity is limited, with the government resorting to reprioritisation of its budget to stimulate a battered economy. Growth for the year is forecast at a measly 0.7%. Emerging markets have been on a roller-coaster ride over the past five years since the US Federal Reserve first announced it was gradually reducing the buying of bonds and wou...
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