Tito Mboweni : He loves Twitter

South Africa can’t implement a pay deal with public servants because it would precipitate a fiscal crisis, Finance Minister Tito Mboweni said.

The government and labour unions will square off in the Labour Appeal Court on Dec. 2 over Mboweni’s proposal to freeze wages that have surged 51% since 2008.

Last week, Fitch Ratings and Moody’s Investors Service cut South Africa’s debt assessments deeper into junk, saying the state may struggle to stick to its plan to rein in spending.

“What government and the South African economy cannot now afford, and what is not just and equitable under the current circumstances, is for civil servants to claim yet further inflation-beating and private sector outperforming salary increases off an already high base,” Mboweni said in court documents.

South Africa’s government reneged on a three-year pay deal earlier this year and Mboweni said last month it will freeze wages for the coming three years.

The government and unions usually negotiate page for three years at a time and the current agreement will end in March 2021.

The Congress of South African Trade Unions, the nation’s largest worker federation, has warned the dispute over salaries could lead to the unravelling of its alliance with the ruling African National Congress.

Mboweni said Zambia’s financial woes provided a cautionary tale and South Africa can ill afford to go down the same path.

Zambia this month defaulted on its Eurobonds, the first African nation to do so since the onset of the coronavirus pandemic.

The South African government would be compelled to borrow more than R78 billion ($5.1 billion) if the court backs the labour unions in their fight to have the wage agreement implemented, Public Service and Administration Minister Senzo Mchunu said in the court documents. -Bloomberg




  1. Before Zimbabwe was used as a comparison of what should not happen to your economy and now its Zambia. Imagine where this PF has taken us. Made us the laughing stock of the world.

  2. Now President Edgar Lungu wants to contest elections in 2021 when he has made Zambia a laughing stock with the poverty he has imposed on us Zambians. Lawyers are by far the most clean thinkers but in the case of our President i am left astounded with his desire to continue as president. First of all, his first term as President was covered in the the constitution before the amendment. There is no problem with his second term but the contention is with the first term which the first constitution deems a term because he was voted for through an election. The amended constitution talks of a term being five years, yes this is true because we have to set the period of a term under a normal circumstances. It does not mean that if a President dies and you are voted in you start looking for a five year term. No.If the constitution allowed this, then he should have stayed as President until his first five years were completed. Secondly, he was not a running mate to President Sata for him to say, ” I was finishing the term for Mr. Sata” You only finish somebody”s term under this amended constitution, not the old constitution and in this case you do not undergo through an election. If the issue at stake happened under the old constitution you can not quote the new constitution and you stand on it and say, “There is a clause in the constitution which allows me to stand” No sir, you are wrong. Reflect correctly and stand down period. Do not rely on the pronouncement of a court where you appointed Lawyers who did not qualify to take up those positions. NO ONE4 GETS VOTED FOR THREE TIMES IN ZAMBIA.


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