So. The International Monetary Fund (IMF) has approved a $4.3 billion loan in ‘emergency assistance’ to help the South African government address this country’s ‘challenging health situation and severe economic impact of the Covid-19 shock’.

Thereafter, says the IMF, ‘there is a pressing need’ to ensure debt sustainability, fix state-owned enterprises, and implement other ‘growth-enhancing structural reforms’. ‘Urgency’ and ‘steadfast implementation’ to ‘achieve sustainable and inclusive growth’ are devoutly to be wished.

If the IMF actually believes that any of these pious hopes will amount to anything, then it has not been doing enough homework. While that organisation was busy issuing its statement last week, Cyril Ramaphosa was simultaneously sending out one of his newsletters. This contained promises about fixing ‘fundamentals’, a ‘capable state’, new ‘sources of growth’, ‘reliable energy’, ‘access to broadband’, ‘competitive ports’, ‘efficient transport’, ‘improving execution’, speedier ‘implementation’, a ‘new methodology to develop an infrastructure pipeline,’ a ‘growing small and medium enterprise sector’, ‘initiatives to improve the business environment’, a ‘robust programme of reconstruction and recovery’, and a ‘firm platform for industries with high potential to flourish’.   

All of this we have heard times without number. Some of it echoes intentions expressed by the minister of finance and the governor of the South African Reserve Bank in their letter of 15 July asking the IMF for the emergency loan. But the number of people who actually believe that President Ramaphosa has the intellectual conviction, leadership qualities, and political courage to implement any of these reforms is shrinking as fast as the economy. He long ago missed his chance to liberalise his government’s restrictive policies. And even if he now wanted to, which is doubtful, Luthuli House would not allow it. 

‘New sources of growth’             

In his newsletter Mr Ramaphosa also said ‘an agricultural sector that delivers food security’ was ‘relevant and urgent’ among the ‘new sources of growth’. ‘Food security’ is precisely what this country’s farmers already deliver, not least as they are busy harvesting one of the largest maize crops ever.

Mr Ramaphosa’s government is itself by far the biggest threat to food security: charitable organisations have to seek a court order to get the government’s own National School Nutrition Programme implemented during the current lockdown; ministers and officials shut down soup kitchens, prohibit the distribution of cooked food, peanut butter sandwiches, and food parcels, and otherwise obstruct charities that feed the hungry; and, of course, the threat of expropriating farms and other property has been renewed.

Mr Ramaphosa further wrote in his newsletter of ‘the need to bring together the best available skills’. This while his government is busy with legislation to strengthen enforcement of racial quotas in the private sector, one consequence of which will be to compel companies to get rid of skills possessed by people of the wrong colour.

Cajoling the private sector

‘There is a strong commitment,’ the president added, ‘to a social compact…so that the reconstruction of our economy can be a shared responsibility and a shared undertaking.’ What this means is cajoling the private sector into complying with expropriation of private property, including land and the assets of pension funds. It also means compliance with ‘employment equity’ quotas. It further means compliance with escalating ‘black economic empowerment’ demands.

The IMF talks of ‘growth-enhancing structural reforms’. But when Mr Ramaphosa and his party talk about economic ‘reconstruction’, what they actually mean is implementation of their long-standing commitment to the national democratic revolution (NDR) and ‘radical economic transformation’, including more racial preferencing, expropriation, a growing role for the state to the detriment of the private sector, and hostility to capitalism and the white colonialists who brought it to these shores.

Cadre deployment across the public sector is one means of implementing the NDR. But cadre deployment is not limited to government and state-owned enterprises. It happens elsewhere too. Plenty of listed companies have long since invited party cadres on to their boards. Universities and the media are full of people who have bought into key aspects of the NDR, even if they have not all been formally deployed there as cadres.  

Thrust accords with NDR ideology

The African National Congress (ANC) and the South African Communist Party (SACP) have never made any secret of their commitment to the NDR. Analysis of the policies implemented since 1994 shows that the overall thrust accords with NDR ideology, even though actual implementation is sometimes a case of two steps forward, one step back, as the political ‘balance of forces’ shifts from time to time.

Yet rarely, if ever, is the NDR mentioned by the business community, investment and economic analysts, or the mainstream media. Only a handful of commentators – probably no more than a dozen in all – pay it any attention. The rest are still stuck with the notion that South Africa has ‘excellent policies but poor implementation’. They are ignorant of the NDR or they choose to ignore it. Either way they fail even to discuss it.    

Which brings us back to the IMF. It says South Africa has promised to manage the emergency loan ‘with full transparency and accountability’, but there are no conditions attached. In any event, the ‘structural reforms’ the IMF has in mind are incompatible with the prevailing ideology of the two parties that are jointly ruling us. The ANC and the SACP know this. Does the IMF?                                                  

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39 COMMENTS

  1. J K B could not have written a truer word
    But one matter he did not write about is the lying of the anc and the absolute control of NDZ.
    To many in the party, lying is like eating, especially if he is a government employee with his snout in the piggy bank
    It is just a question of which anc member pocket it is going to land and then off to the profits of Daimler Benz and BMW
    Realist
    Thailand

    • They will learn that you cannot trust them and they can write the loan off before the ink is dry on the proverbial cheque . First to blame is that bloody dutch man JvR, and then the rest. Don’t forget about all the Bentleys & Porches. I live close to Mamelodi and see these guys driving around & 60% of all black drivers don’t obey traffic laws. They were made for the stupid whites. Just look at the latest crime figures and that’s all because of BLM etc. Never mind that clown with the cowboy hat, he acts like the first black John Wayne.

    • True. Even “redistribution of wealth” to them means “redistribute more equal ownership of Daimler Benz’z, BMW’s and Stellenbosch wine-farms to the ANC tsotsi-leaders.”

  2. Indeed. Our favoured political parties have alwasys talked a good war, as they say. It is straight out of Alice in Wonderland, ” Words mean what I want them to mean” is the mantra, and everyone nods in awe at the speaklers’ rheotorical ability. Ther syndrome was best shown by the late rhetorical genius and economic midget, Robert Gabriel Mugabe. He could speak the Queen’s English, dressed like a gentleman of the English Shires, and used his years of free board and lodging in Ian Smith’s jails adding letters adfter his name — and still learned absolutely nothing that benefitted his country or his countrymen and women.

    We have a lot like him here. But most of them are dead or are dying. What is left is the coterie of gangsters that every society breeds.

  3. Does the IMF understand the ANC?
    Short answer is; No. For if it did it would not have lent money to a government that hates the IMF and is unlikely ever to pay it back.
    Why lend money to a government that has in the last 4 months lost the equivalent in taxes through shear stupidity.
    Why lend money to a government which will procure the necessary equipment at inflated prices through having to pay off expensive middlemen.
    We need a delegation of respected citizens to inform Ms Kristalina Georgieva, head of the IMF of the facts before sha wastes any further IMF funds on a bunch of incompetent and corrupt fools.

    • The IMF is like a pack of wild dogs or hyenas. They mostly prey on the weak and sick. Once a country becomes eligible for a IMF bailout it is curtains for that country. The IMF will call the shots and decide our budget. It is a debt trap that we cannot afford.

  4. Just like the EU, IMF refuses to acknowledge that people who were made saints by the media in the “old days” are now revealed to be nothing but a bunch of outright incompetents, thieves, tyrants and murderers. This refusal is due to two things- the fear of being accused of racism for pointing out what the SA government has done and is still doing wrong, and the desire to keep doing business because there’s money to be made with these loans even if they beggar the country.

  5. Yes they do understand it better then us. This is just first loan and we don’t know conditions. IMF have habit of dictating what percentage of loan will be spent on specific things. How much of that loan will be spent on vaccine for example. IMF don’t even worry about SA returning this loan. They are bankers, and they will lend more money in return for something. It is pure neocolonial organisation.

    • You are right. The IMF is / has become part of the New International World Order; the Rothschild equivalent of the Bankers of the World to governments; who will very slowly but very surely reign in countries (through debt-repayment, and through repayment default) so as to fall under their World Order beg and call.

    • I think the current $4.3-billion is just the proverbial “drop in the ocean” relative to the total amount needed in the near future. Its usage and repayment will surely be observed by IMF before possibly advancing any “real money” amounts, to sort out such as Eskom, SAA, PRASA, and the almost endless list of others.

  6. And this is why our official opposition as a whole are as pointless as our notion of either being a constitutional democracy, a social democracy, or even a multi-party state of any sort. The DA are completely distracted by the multiple ANC red herrings, The Media, and particularly the liberal media have their own ‘leftie’ agendas and PC inanity they pursue, mostly bereft of journalists let alone ones that implement much honor, morality and integrity the profession is supposed to represent.

    • Agreed. Sadly SA suffers of the same disease as the rest of Africa: No viable political opposition party, no proper media and many big corporates that quietly get on making money without criticising a corrupt, useless governing party.

  7. The SACP/anc/cosatu/cosas alliance suffer from a “god” complex.
    In Genesis it reads “ And GOD said ‘Let there be light’ and there was light.”
    CR seems to think that if he says it on behalf of the ruling hegemony, it will automatically just “be.”
    Sorry, the magic wand’s battery is flat.

  8. The country’s farmers, industrialists and BIG business need to get behind and push for the scraping of every bit of the restrictive BEE etc, legislation. Somehow Ramaphosa’s nose (and many other noses) should be pushed up to the window to see just how much business along racial lines (BEE) will tie up and hamper efforts to revitalise (OUR) economy. Or is it too late already?

  9. My cousins’ family fled Zim in the 80’s. At the time I attributed it to right wing Smith ideology.. Now I’m glad they left for a better life here. Mugabe & his cronies proved them right unfortunately.. Maternal uncle also fled with his family later deciding SA was heading the same way :emigrated to Australia for a better life, drought and wildfires notwithstanding. Neither family were landowners :they were suburbanites in the then Salisbury.

  10. JKB has got it. The ANC/SACP worship an ideology, not, God the unknown and the inscrutable. Worshipping an ideology is actually a very poor substitute for worshipping God because it nurtures human arrogance rather than humility and it inevitably leads to an increase in human suffering rather than a decrease.

  11. Lets not forget what the IMF really is… It’s an institution that lends out money at interest for profit. On paper the ANC is a good client. The loan has no conditions and the IMF wants to make money. So hence the loan.

  12. Can’t believe what the IMF has done…no guarantees and noi leverage……apart from not helping themselves they are not helping South Africa. If the IMF carries on like this they will be bankrupt………….am devatstated

    • Christopher they are part and parcel of the federal note fiat ponzy scheme. They are the messenger of the most corrupt.

    • ?? Really… serious question:
      how do you go bankrupt when you can just print $

      The rules of the game you think is being played is not even the game being played…

  13. Worst loan is one with no strings attached. It ends up with all property and life itself attached. Just ask anyone who have ever borrowed from loan sharks to cover its lavish lifestyle. IMF know exactly what they are doing, they got foot in the door. Borrowing 70bn to someone who just threw away 85bn is nothing more than a loan shark giving free money to an unemployed gambler that is wasting his father’s heritage.
    They know they own us now, whatever SA earn in the future, everything will be given to IMF.

  14. May the CADRE has infiltrated the IMF – if not, THEY are BRAINDEAD to have given the SNOUTER a cent!!!!!!
    The $4bn was ”ALLOCATED” before it was deposited in the ”cadre bank”!!!!!

  15. This money was NEVER for covid, it’s for their upcoming ELECTIONS and to sustain the LOCKDOWN of US!!!WHERE is Cy’s promise to cut salaries & REDUCE the amount of CADRES???????

  16. The IMF reasoning for this loan to South Africa demonstrates how little they know the ANC. The IMF will never get their money back. The ANC will squander it on themselves and, as usual, it will not get to where it is most needed, the ordinary people of South Africa. The ANC must surely be the most corrupt incompetent government in the entire world. They should have been made to account for every last cent of that money. The whole sordid business is ridiculous.

  17. It is not as simple as that.
    As a registered SEC entity, SA is de facto USA company, so various rules apply. Second, as IMF member, we are under obligations under SSEC rules by them. In case we default on payment, there are various mechanisms that either USA or IMF can start recovering their money. Starting with property attachments, account freezes… The last resort are economic sanctions against ANC or whoever does not want to play by the rules. They will get their money, one way or another.
    Just wait, negotiations for new $100bln loan are about to start for year 2025.

    • No rules apply to the ANC except to take & not to give except themselves. You also have to have shame if you can’t fulfill any of your commitments. If you want to see the expression of real shame watch how they carry on in parliament.

  18. Absolutely right Solly. No one thought of that. America was patiently awaiting its chance to ‘get involved.’ They have a law which states that anything involving US dollars gives them an absolute right to intervene and intervene they will.. My bet is that the loan is not in Euros.

  19. On the Subject of – DOES THE IMF UNDERSTAND THE ANC.

    I think not. The money recently approved funding is just going to be repeatedly stolen, misused and dishonestly spent by the various departments in Government. Generally on projects of personal interest to the official with intent of personal gain by arranging contracts with family and friends to share profit and enrich themselves with overpricing and kickback fees.

  20. Every right thinking person should declare him/her self as sovereign free man responsible only to our Creator and all entities created by free men are subservient to to the created free men. Desist in the declaration that you are not at liberty to contribute , participate or trade to the registered corporation’s (RSA) corruption, bankruptcy or debt and that you did not consent to such actions.
    Just today I was informed that a mining group will NOT deal with any supplier that is not 100% owned by some community leaders and that means whites are forbidden to trade with them.
    Even in 1972 any company trading from a “Homeland” had 5 to 10% tender preference plus transport and labour subsidies in the Republic. I would love to be treated that way!!! We did not and do not feed at the troughs, the IMF hates us, we honour our agreements.

  21. The disastrous explosion of chemicals stored in the port of Beirut highlighted not only that particular tragedy but the economic tragedy of Lebanon that has been unfolding for some time but gone unnoticed in S. Africa. That country has had one of the most dramatic economic implosions of recent times and has been reduced to begging relief from the IMF.
    Of course, the tragedy of Venezuela’s political and economic woes have been flashed across our TV screens for some years detailing the ever declining situation of what a convoluted economic and political policy has reduced that country to.
    Here we have a socialist/communist regime – Venezuela and a free market economy Lebanon both failed states both ruled by corrupt and self-enriched politicians and both on the brink of collapse.
    Then there is the third catastrophe of Zimbabwe a failed state governed by an inept self- indulgent, corrupt and brutal leadership, about to explode into civil strife out of sheer hunger as not even the incredible patience of the long-suffering people can no longer endure.
    All three vastly different in ideology but all three with a common thread – corrupt and inept leadership steering their countries down the same road of disaster and tragedy. Can South African’s not see the mirror image staring them in the face? What more will it take to wake us up to the reality of The ANC’s misguided ideology of national democratic revolution (NDR) and ‘radical economic transformation?
    Does the IMF really understand what is takes to make a failed state?

  22. Of course the IMF knows what it is doing. They know they won’t get paid. In fact they count on it.

    “It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So“

    Time to red pill??

    “How An Economic Hit Man Operates:
    1. Identify 3rd World Country With Valuable Resources
    2. Arrange Huge Loan To That Country From The #IMF
    3. Give Bankers Corporations This Loan Money To Build Infrastructure.
    4. Poor Country Defaults On Loans
    5. Bankers Claim Valuable Resources”

    https://youtu.be/oilxI6Dgoy8

  23. In my opinion I think they use this IMF loan with conditions for the minister of finance to get rid of corruption.
    Get rid of extra 15 000 employees at Eskom @ R40 000.00 and plus salary and allowances.
    Reduce expenses at the Government, 88 flights a month for family and employees, housing medical pensions.
    We should let them use their Government Pensions to lift up this country.
    all bribery funds should come back to the country. they must start to go to Public hopsitals, public transport and then they will feel the pain of our normal citizens and start to upgrade and take care of it. Covid-19 is money making hoax and nothing other than normal flue. We died for many years old people if we did not take care in flue seasons. Why is our country worst lockdowns than the world even WHO states virus not earborn not transferable. I can send WHO video. What other doctors say. Other countries smoke drink. Ilegal sigarets dont kill just good sigarettes.

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