We cannot build a future based on outdated struggle narratives and misplaced principles. The ANC leadership, especially figures such as Gwede Mantashe, must accept that the world has changed. The 1960s and ’70s are long behind us, and imperial oppression is no longer the dominant force it once was. The economic reality we face requires shrewd, strategic decision-making, not stubborn ideological nostalgia.
The proposed two percentage point VAT hike was a desperate move by leaders who failed to see the bigger picture. According to the most informed source - the SA Revenue Service commissioner himself — the last VAT increase yielded little tangible benefit for the country. Another hike will only further burden an already overtaxed populace.
Such fiscal policy is symptomatic of a government that refuses to acknowledge the seismic shifts shaping global politics and economics. Rather than pursuing innovative financial solutions, they seek primitive tax measures that hurt some while doing little for most.
A VAT increase hits the middle- and lower-income groups, who are already stretched, while a wealth tax motivates the wealthy few, who carry 45% of the personal tax pool, to consider investing in US President Donald Trump’s new “Gold Card”. SA loses, but hey - ministers keep their perks for another year.
Fixed investment as a percentage of GDP is where we need to focus. By increasing this ratio to 25% of GDP (it’s now 15%) we can take unemployment from 30% or so to 10% in 20 years. But fixed investment needs big, deep, hard currency pockets. For all their polite lip-service, the Europeans don’t pump hard currency into the SA economy. Yes, they trade well with Western Cape exporters and they don’t threaten us. But we need dollars, baby. Big, bad dollars. And there’s only one place to get them fast and get them big.
In fairness, our leadership is under immense pressure, not just from within, but from global forces they either ignore or fail to understand. With a single post on X, Trump can trim SA’s currency value. With a handshake and ring kiss, he can double fixed investment to GDP. Rather than leveraging this reality to our advantage, our government chooses to turn itself into an international pariah.
Take the case against Israel at the International Court of Justice. However morally justified it may be, it is a fight we cannot afford. No country has stepped up to support us as we sink deeper into economic uncertainty. They certainly aren’t prioritising the wellbeing of our 60-million citizens, nor the estimated 30-million immigrants within our borders.
Meanwhile, the world moves on. In the space of 10 days Ukraine’s President Volodymyr Zelensky went from being the darling of Western leaders to an isolated and ridiculed “dictatorial
ex-comedian” in the words of the US president; and then settled for being a pragmatic moderate who has given America access to Ukraine’s rare minerals to avoid being thrown under the bus. In 10 days!
Meanwhile, in the same 10 days Russian President Vladimir Putin, endorsed by Trump, has established himself as being more in control of Europe’s destiny than French President Emmanuel Macron. This is not the Twilight Zone, simply the world in 2025.
What’s to stop us from being the most highly regarded partner to America in the western hemisphere within the next six months? The global balance of power is shifting fast and SA cannot stubbornly refuse to move with it.
We are not irrelevant. We have assets the world wants; critical minerals, energy resources, human capital and strategic geographic positioning. Yet instead of leveraging these strengths, our leaders resort to taxation, increasing the burden on ordinary citizens while failing to strike meaningful international deals.
When the US asked Ukraine for exclusive access to a package of minerals in exchange for support ,it told us exactly what it needs. Now imagine a world where the rand-dollar exchange rate is negotiated down to R10, not through wishful thinking but through calculated diplomacy and economic strategy.
What can we put on the table that makes SA indispensable? What we need is profitable, high- value alliances built to secure a future that benefits the majority. This future will not be built through incremental changes and cautious steps. It requires bold, decisive action.
The world has little patience for ideological posturing. Those who refuse to adapt will be left behind. It’s time for our leaders to stop clinging to principles that no longer serve us. It’s time to start playing the game the way the world actually works. And above all, it’s time to stop mucking about.
• Madlala runs an independent communications group.
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