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Khaya Gobodo, Managing Director of Old Mutual Wealth joins CNBC Africa to discuss the group’s $8.3 billion commitment towards creating inclusive and sustainable economies.

Old Mutual commits $8.3bn towards creating inclusive and sustainable economies

#WEF20: Why Old Mutual is committing $8.3bn towards creating inclusive and sustainable economies

<a href="https://www.cnbc.com/matthew-j-belvedere/">Matthew J. Belvedere</a> <a rel="noreferrer noopener" href="https://twitter.com/Matt_Belvedere" target="_blank">@MATT_BELVEDERE</a>



KEY POINTS



<ul class="wp-block-list"><li>“We have to protect our genius,” President Trump told CNBC’s Joe Kernen from the World Economic Forum in Davos, Switzerland.</li><li>Musk is “one of our very smart people, and we want to cherish those people,” Trump said.</li><li>The president said Musk is not only good at electric cars. “He does good at rockets, too, by the way. I never saw where the engines come down with no wings, no anything, and they’re landing.”</li></ul>



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President&nbsp;<a href="https://www.cnbc.com/donald-trump/">Donald Trump</a>&nbsp;told CNBC on Wednesday that&nbsp;<a href="https://www.cnbc.com/id/100987750">Elon Musk</a>&nbsp;is one of the world’s “great geniuses,” he likened the CEO of&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=TSLA">Tesla</a>&nbsp;and SpaceX to Thomas Edison.



Musk is “one of our great geniuses, and we have to protect our genius,” Trump said in an interview with&nbsp;<a href="https://www.cnbc.com/squawk-box-us/">“Squawk Box”</a>&nbsp;co-host&nbsp;<a href="https://www.cnbc.com/joe-kernen/">Joe Kernen</a>&nbsp;from the World Economic Forum in Davos, Switzerland.



“You know, we have to protect Thomas Edison and we have to protect all of these people that came up with originally the light bulb and the wheel and all of these things. And he’s one of our very smart people and we want to cherish those people,” the president said.



<a href="https://bigthink.com/technology-innovation/this-elon-musk-interview-reveals-if-he-prefers-nikola-tesla-or-thomas-edison" target="_blank" rel="noreferrer noopener">In a 2008 interview,</a>&nbsp;Musk said Edison and Nikola Tesla, for whom he named his electric auto company, were both role models, but he preferred Edison. Tesla, the scientist, was a rival of Edison.



Trump’s comments on Musk come as shares of Tesla have surged recently, more than doubling since late September, and hitting all-time high after all-time high. The stock market value of Tesla&nbsp;<a href="https://www.cnbc.com/2020/01/22/tesla-reaches-100-billion-market-cap.html">set to reach $100 billion.</a>&nbsp;Its market capitalization is greater than those of&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=GM">General Motors</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=F">Ford</a>&nbsp;combined.



Tesla stock has been on a tear after the electric car maker announced a surprise profit in its third-quarter earnings report in October. Back then, the stock was just more than $250 per share.



Musk’s now-infamous “funding secured,” Aug. 7, 2018, tweet sent the stock soaring, but it also marked the beginning of a&nbsp;<a href="https://www.cnbc.com/2019/12/23/tesla-stock-reaches-420-per-share.html">chaotic ride</a>&nbsp;for the company and Musk. In the 16 months that followed, Tesla stock bottomed at a three-year low just under $177 per share in June before boomeranging back up.



Trump recalled those rough times. “You go back a year and they were talking about the end of the company. And now all of a sudden they’re talking about these great things.”



In CNBC’s interview on Wednesday, the president also marveled at what Musk’s commercial company SpaceX has accomplished with rockets that land themselves.



“I spoke to him very recently, and he’s also doing the rockets. He likes rockets. And he does good at rockets, too, by the way. I never saw where the engines come down with no wings, no anything, and they’re landing. I said I’ve never seen that before,” Trump said.



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This content first appeared on CNBC <a href="https://www.cnbc.com/2020/01/22/trump-likens-elon-musk-to-thomas-edison-as-one-of-our-great-geniuses.html">https://www.cnbc.com/2020/01/22/trump-likens-elon-musk-to-thomas-edison-as-one-of-our-great-geniuses.html</a> and is republished with its permission

President Trump’s keynote address at the 2020 WEF annual meeting

#WEF20: Trump says African-born Elon Musk is like Thomas Edison, he needs to be protected, here’s why

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At the ongoing World Economic Forum Annual Meeting in Davos, CNBC International had a conversation with CEO of Barclays, Jes Staley on the banks future plans and possible investments in carbon related products.

World Economic Forum: Barclays CEO Jes Staley on climate change

World Economic Forum: Barclays CEO Jes Staley on climate change, renewable energy & the banks’ future plans

World Economic Forum: The Global Impact of a Tech Cold War

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CNBC international spoke with Hong Kong&#8217;s chief executive Carrie Lam at the World Economic Forum meeting in Davos about The city&#8217;s recent Moody’s ratings downgrade and the economic impact from the Hong Kong protests.

World Economic Forum: Carrie Lam on economic impact of Hong Kong protests

World Economic Forum: The Business Case For Safeguarding Nature

World Economic Forum: Shaping the Future of the Digital Economy

By <a href="https://www.cnbc.com/karen-gilchrist/">Karen Gilchrist </a>



For decades, political and economic policies have been built on the promise of helping people do better than the generations before them. But still today, in 2020, the opportunities we get in life remain largely dictated by the socio-economic circumstances we’re born into.



That’s the finding of a new report from the&nbsp;<a href="https://www.cnbc.com/davos-world-economic-forum/">World Economic Forum</a>, which says that most countries are failing to stamp out historical inequalities that prevent people from realizing their full potential.



In its inaugural&nbsp;<a href="https://www.weforum.org/reports/global-social-mobility-index-2020-why-economies-benefit-from-fixing-inequality" target="_blank" rel="noreferrer noopener">Global Social Mobility Index</a>&nbsp;released Monday, WEF found that just a handful of governments — specifically those in Scandinavian countries — have succeeded in laying the foundations for greater social mobility and more prosperous futures for their citizens.



Social mobility refers to the ability for individuals, families or households to move between various socio-economic strata within a society.



The social framework has long been used as a measure of a society’s socio-economic progress, comparing outcomes such as a person’s earnings versus their parents. However, WEF’s new report looks instead at inputs, such as the policies, practices and institutions within a society.



The report comes as leaders gather to discuss key global issues at WEF’s 50th anniversary in Davos, Switzerland.



<a href="https://www.cnbc.com/id/10000268">Denmark</a>,&nbsp;<a href="https://www.cnbc.com/id/10000281">Norway</a>, Finland,&nbsp;<a href="https://www.cnbc.com/id/10000286">Sweden</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/id/10000276">Iceland</a>&nbsp;— incidentally some of the&nbsp;<a href="https://www.cnbc.com/video/2020/01/09/why-finland-and-denmark-are-the-happiest-countries-in-the-world.html">world’s happiest countries</a>&nbsp;— ranked as the five most socially mobile countries, thanks to their supportive education and employment frameworks.



Other major economies like the&nbsp;<a href="https://www.cnbc.com/united-kingdom/">U.K.</a>&nbsp;(21st),&nbsp;<a href="https://www.cnbc.com/id/10000385">U.S.</a>&nbsp;(27th),&nbsp;<a href="https://www.cnbc.com/china/">China</a>&nbsp;(45th) and&nbsp;<a href="https://www.cnbc.com/india/">India</a>&nbsp;(76th), however, failed to make the top quartile.



To conduct the research, WEF benchmarked 82 countries according to 10 pillars deemed necessary for cultivating social mobility. Those included health care, education, technology access, work opportunities, working conditions, fair wages, social protection and inclusive institutions.



WEF&#8217;s Global Social Mobility Index Ranking 2020 



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF.png" alt="" class="wp-image-353936" width="479" height="559" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF.png 469w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF-257x300.png 257w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Make-it-WEF-359x420.png 359w" sizes="(max-width: 479px) 100vw, 479px" /><figcaption> Source: <a rel="noreferrer noopener" href="https://datawrapper.dwcdn.net/oTOMN/2/" target="_blank">World Economic Forum</a>  <a href="data:application/octet-stream;charset=utf-8,Country%2CRank%20(Out%20of%20100)%0ADenmark%2C85.2%0ANorway%2C83.6%0AFinland%2C83.6%0ASweden%2C83.5%0AIceland%2C82.7%0ANetherlands%2C82.4%0ASwitzerland%2C82.1%0AAustria%2C80.1%0ABelgium%2C80.1%0ALuxembourg%2C79.8%0AGermany%2C78.8%0AFrance%2C76.7%0ASlovenia%2C76.4%0ACanada%2C76.1%0AJapan%2C76.1%0AAustralia%2C75.1%0AMalta%2C75%0AIreland%2C75%0ACzech%20Republic%2C74.7%0ASingapore%2C74.6">Get the data</a>  <a rel="noreferrer noopener" href="https://www.datawrapper.de/_/oTOMN/" target="_blank">Created with Datawrapper</a> </figcaption></figure></div>



In particular, it found that most countries lagged behind in four areas: fair wages, social protection, working conditions and lifelong learning.



Social mobility — or a lack of it — has serious implications not only for individuals, but also for the societies they live, the report noted. While some nations have taken steps to build more inclusive systems, much remains to be done to get the foundations right, according to WEF’s founder and executive chairman, Klaus Schwab.



“The social and economic consequences of inequality are profound and far-reaching: a growing sense of unfairness, precarity, perceived loss of identity and dignity, weakening social fabric, eroding trust in institutions, disenchantment with political processes, and an erosion of the social contract,” Schwab.



“The response by business and government must include a concerted effort to create new pathways to socioeconomic mobility, ensuring everyone has fair opportunities for success.”



This article was first published on CNBC <a href="https://www.cnbc.com/2020/01/21/wef-where-youre-born-determines-the-opportunities-you-get-in-life.html">https://www.cnbc.com/2020/01/21/wef-where-youre-born-determines-the-opportunities-you-get-in-life.html</a> and is republished with its permission.

Child_Poverty_Shutterstock

Where you’re born determines the opportunities you get in life, says the World Economic Forum

World Economic Forum: Shaping the future of financial and monetary systems

World Economic Forum: Shaping the Future of Financial and Monetary Systems

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The booming Chinese tech industry gives opportunities for big gains from that marketplace. CNBC International spoke to one of the Chinese big tech players, Group CEO of Naspers and Prosus, Bob van Dijk, about how he looks at Chinese tech industry.

World Economic Forum: Bob van Dijk: Why we are excited about India

World Economic Forum: Bob van Dijk: Why we are excited about India, recyclables

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CNBC International spoke with the president of Botswana Mokgweetsi Masisi at this year’s World Economic Forum on his plan to push Botswana&#8217;s growth potential locally and internationally.

World Economic Forum: Botswana’s Mokgweetsi Masisi on why the youth

World Economic Forum: Botswana’s Mokgweetsi Masisi on why the youth, leapfrogging present a big advantage for the country’s growth

World Economic Forum: President Trump’s keynote address at the WEF annual meeting

<a href="https://www.cnbc.com/sam-meredith/">Sam Meredith</a> <a rel="noreferrer noopener" href="https://twitter.com/@smeredith19" target="_blank">@SMEREDITH19</a>





KEY POINTS



<ul class="wp-block-list"><li>The upcoming forum will mark the first time Trump has attended the same event as Thunberg since the pair briefly crossed paths at the UN climate change summit in New York last year.</li><li>The U.S. president, who is likely to be one of the star attractions of the event, has often expressed skepticism about the scale of the climate crisis.</li><li>Thunberg has reportedly pledged to tell global leaders in attendance at Davos to “immediately and completely divest from fossil fuels.”</li></ul>



President&nbsp;<a href="https://www.cnbc.com/donald-trump/">Donald Trump</a>&nbsp;and Swedish climate activist Greta Thunberg will both attend the World Economic Forum (<a href="https://www.cnbc.com/davos-world-economic-forum/">WEF</a>) this week, stirring up a heightened sense of intrigue in the Swiss Alpine town of Davos.



The 50th edition of the annual January get-together — which draws policymakers and business leaders from around the world — is scheduled to focus on the intensifying climate crisis.



Trump is set to travel to the picturesque ski resort after skipping the conference last year due to the partial government shutdown. The U.S. president, who is likely to be&nbsp;<a href="https://www.cnbc.com/2020/01/14/wef-2020-heres-who-is-going-to-davos-this-year.html">one of the star attractions</a>&nbsp;of the event, has often expressed skepticism about the scale of the climate crisis.



Since coming to power in 2016, Trump has pulled the U.S. — one of the world’s leading carbon emitters — out of the Paris Agreement and&nbsp;<a href="https://www.cnbc.com/2019/12/24/5-major-trump-climate-rollbacks-you-might-have-missed-in-2019.html">sought to roll back over 80 environmental regulations</a>.



His much-anticipated return to Davos will mark the first time he has attended the same event as Thunberg since the pair briefly crossed paths at the United Nations (<a href="https://www.cnbc.com/id/10000938">UN</a>) climate change summit in New York last year.



In a widely-shared video on social media, Thunberg could be seen glaring at Trump as he addressed reporters.



<h2 class="wp-block-heading">What’s the context?</h2>



The 17-year-old, who was catapulted to fame for skipping school every Friday to hold a weekly vigil outside Swedish parliament in 2018, was recently named Time Magazine’s&nbsp;<a href="https://www.cnbc.com/2019/12/11/greta-thunberg-is-times-2019-person-of-the-year.html">Person of the Year for 2019</a>.



She was recognized for the award after sparking an international wave of school strikes — also known as “Fridays for Future.” Millions of children took part in rallies around the world to protest against political inaction over climate change.



<blockquote class="twitter-tweet">.<a href="https://twitter.com/GretaThunberg?ref_src=twsrc%5Etfw">@GretaThunberg</a> is TIME&#39;s 2019 Person of the Year <a href="https://twitter.com/hashtag/TIMEPOY?src=hash&amp;ref_src=twsrc%5Etfw">#TIMEPOY</a> <a href="https://t.co/YZ7U6Up76v">https://t.co/YZ7U6Up76v</a> <a href="https://t.co/SWALBfeGl6">pic.twitter.com/SWALBfeGl6</a>&mdash; TIME (@TIME) <a href="https://twitter.com/TIME/status/1204743717132914688?ref_src=twsrc%5Etfw">December 11, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>



“So ridiculous. Greta must work on her Anger Management problem, then go to a good old-fashioned movie with a friend! Chill Greta, Chill!” Trump tweeted on Dec. 12.



In an interview with BBC radio’s Today program late last month, Thunberg&nbsp;<a href="https://www.cnbc.com/2019/12/30/i-wouldnt-have-wasted-my-time-on-trump-at-un-climate-summit-greta-thunberg-says.html">said</a>&nbsp;attacks from the U.S. president and others should be seen as “proof that we are actually doing something and that they see us as some kind of threat.”



When asked what she would have said to the U.S. president if they had spoken at the UN climate change summit, Thunberg&nbsp;<a href="https://www.cnbc.com/2019/12/30/i-wouldnt-have-wasted-my-time-on-trump-at-un-climate-summit-greta-thunberg-says.html">replied</a>: “Honestly, I don’t think I would have said anything because obviously he’s not listening to scientists and experts, so why would he listen to me?”



“So, I probably wouldn’t have said anything, I wouldn’t have wasted my time.”



<h2 class="wp-block-heading">‘We absolutely need to do things differently’</h2>



Thunberg has reportedly pledged to tell global leaders in attendance at Davos to “immediately and completely divest from fossil fuels.”



She is scheduled to deliver the opening remarks of a panel session entitled “Averting a Climate Apocalypse” on Tuesday.



The WEF’s theme, officially recognized as “<a href="https://www.weforum.org/agenda/2019/10/davos-2020-wef-world-economic-forum-theme/" target="_blank" rel="noreferrer noopener">Stakeholders for a Cohesive and Sustainable World</a>,” follows a year which reportedly saw the hottest year on record for the world’s oceans, the&nbsp;<a href="https://www.cnbc.com/2020/01/15/2019-was-the-second-hottest-year-on-record.html">second-hottest year for global average temperatures</a>&nbsp;and wildfires from the U.S. to the Amazon to Australia.







The event, which is often criticized for being out of touch with the real world, has said it aims to assist governments and international institutions in tracking progress toward the Paris Agreement and the UN’s Sustainable Development Goals.



“I think we absolutely need to do things differently. We are not going to get anywhere by just carrying on doing what we used to do,” Emily Farnworth, head of climate initiatives at WEF, told CNBC on Wednesday.



“I think this pressure from young activists in really keeping a spotlight on where some of these problems lie is really important and having companies pushing to demonstrate how they can do things differently just helps to move things in the right direction,” she added.



This article first appeared on CNBC <a href="https://www.cnbc.com/2020/01/16/trump-vs-greta-thunberg-davos-prepares-for-climate-crisis-showdown.html">https://www.cnbc.com/2020/01/16/trump-vs-greta-thunberg-davos-prepares-for-climate-crisis-showdown.html</a> and is republished with its permission

Stefan Wermuth | Bloomberg | Getty Images

Donald Trump vs. Greta Thunberg: #WEF20 prepares for climate crisis showdown

<a href="https://www.cnbc.com/chloe-taylor/">Chloe Taylor</a> <a rel="noreferrer noopener" href="https://twitter.com/@ChloeTaylor141" target="_blank">@CHLOETAYLOR141</a> 



 KEY POINTS



<ul class="wp-block-list"><li>The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, according to a new study by Oxfam.</li><li>The charity urged policymakers to increase taxes on the world’s wealthiest by 0.5% over the next decade in a bid to reduce wealth inequality.</li></ul>



The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed.



In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality.



The report comes as delegates gather in Davos, Switzerland, for the annual World Economic Forum conference.



“If everyone were to sit on their wealth piled up in $100 bills, most of humanity would be sitting on the floor,” its authors said.



“A middle-class person in a rich country would be sitting at the height of a chair. The world’s two richest men would be sitting in outer space.”



<a href="https://www.cnbc.com/quotes/?symbol=AMZN">Amazon</a>&nbsp;founder&nbsp;<a href="https://www.cnbc.com/jeff-bezos/">Jeff Bezos</a>&nbsp;is currently the richest person in the world,&nbsp;<a href="https://www.forbes.com/real-time-billionaires/#34a50bdd3d78" target="_blank" rel="noreferrer noopener">according to Forbes</a>, with a net worth of around $116.4 billion. The second wealthiest person on the planet is&nbsp;<a href="https://www.cnbc.com/2019/11/26/billionaire-bernard-arnault-overtakes-bill-gates-as-second-richest-man.html">Bernard Arnault</a>, a French billionaire who owns luxury goods group&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=MC-FR">LVMH</a>&nbsp;and has a&nbsp;<a href="https://www.forbes.com/profile/bernard-arnault/?list=rtb/#58b72d3c66fa" target="_blank" rel="noreferrer noopener">net worth</a>&nbsp;of $116 billion.



Oxfam’s report noted that someone who saved $10,000 a day since the construction of the Egyptian pyramids would still be 80% less wealthy than the world’s five richest billionaires.



<h2 class="wp-block-heading">‘Failing economic system’</h2>



Oxfam urged policymakers to increase taxes on the world’s wealthiest by 0.5% over the next decade in a bid to reduce wealth inequality. A 0.5% increase in taxes on the wealthy would generate enough funding to create 117 million jobs in sectors like education and health, according to the researchers.



Other suggestions made by Oxfam to help mitigate inequality included investing in national care systems, challenging sexism, introducing laws to protect carers’ rights, and ending extreme wealth.



<figure><iframe src="https://art19.com/shows/4420ff26-c17c-4c28-a654-a663d4bcbf60/episodes/4a7c4e6a-5b19-4c57-85f5-d8a7c7fc611a/embed"></iframe></figure>



“Extreme wealth is a sign of a failing economic system,” the report said. “Governments must take steps to radically reduce the gap between the rich and the rest of society and prioritize the wellbeing of all citizens over unsustainable growth and profit.”



The call for a tax overhaul reinforces the charity’s message ahead of last year’s WEF summit, when Oxfam&nbsp;<a href="https://www.cnbc.com/2019/01/21/oxfam-calls-for-global-tax-hikes-for-the-worlds-richest.html">urged governments</a>&nbsp;to hike tax rates for corporations and society’s richest to reduce wealth disparity.



<a href="https://www.cnbc.com/2020/01/08/imf-chief-calls-for-tax-hikes-on-the-wealthy-to-reduce-inequality.html">Earlier this month</a>, International Monetary Fund Managing Director Kristalina Georgieva called on policymakers to rethink their tax systems and consider “progressive taxation” that would increase levies on society’s richest to tackle wealth inequality.



Democratic presidential hopeful Elizabeth Warren has vowed to implement a wealth tax in the U.S. if elected, which has <a href="https://www.cnbc.com/2019/11/22/disney-heiress-endorses-elizabeth-warrens-wealth-tax.html">divided opinion</a> among American billionaires.



This article first appeared on CNBC <a href="https://www.cnbc.com/2020/01/20/oxfam-worlds-billionaires-richer-than-a-combined-4point6-billion-people.html">https://www.cnbc.com/2020/01/20/oxfam-worlds-billionaires-richer-than-a-combined-4point6-billion-people.html</a> and is republished with its permission

The world’s 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says

South African finance minister Tito Mboweni held a priceless piece of history in his hands but tossed it the bin in the snows of Switzerland. It would have been worth a fortune today. 



The pile of paper in question contained a speech by the then president- in-waiting Nelson Mandela who was the star of the World Economic Forum in Davos back in 1991. Fresh from 27 years in prison, Mandela addressed the forum and earned a 10-minute standing ovation before he uttered a word.



READ: <a href="https://www.cnbcafrica.com/zdnl-mc/2020/01/16/sas-finance-minister-how-rats-and-thieves-are-nibbling-and-pilfering-sas-pockets/">SA’s Finance Minister: How rats and thieves are nibbling and pilfering SA’s pockets</a>



Mandela was also trying to negotiate his way to power by carrying the wishes of the rank-and-file African National Conference members. On the cusp of power they wanted nationalisation of the banks and mines as laid down in the country’s sacred Freedom Charter penned by liberation activists in 1955. 



READ: <a href="https://www.cnbcafrica.com/news/2020/01/16/this-is-how-sa-will-sell-its-investment-case-at-wef-2020/">This is how SA will sell its investment case at WEF 2020</a>



Mandela has laboured over a hand written speech promising nationalisation as
a cornerstone of a socialist economy. At the time, with globalisation on the
march, it would have gone down like a lead balloon with foreign investors who
were already edgy about the ANC, that had not long put down its weapons, taking
over the then biggest economy in Africa.



Mboweni recalled that among the first people Mandela met with in Davos, as
he worked on his nationalisation speech, were leaders of the communist parties
in Vietnam and China. 



&#8220;Both of them said to him we are leaders of communist parties we have
economic liberalisation programmes on our agenda. They said leading a national
liberation movement and we are leading communist movements how come you are
more radical than us?&#8221;



But ANC advisors persuaded Mandela to throw the speech away and the young
31-year-old exiled activist, duly cast the pile of papers in the bin.



“He was persuaded that a very long speech on nationalisation might be appropriate
for another forum but not Davos,” says Mboweni at the breakfast on the road to
Davos held at a Rosebank hotel in Johannesburg Thursday.&nbsp;



“It was a big pile of paper. My biggest regret is that I threw it away
because it is part of history and it would be worth a fortune now. The one we
used was only about three pages.”



Those three pages changed history and ushered in a golden decade of growth
and prosperity. Foreign investors, encouraged by swift free market reforms and
easing of exchange controls, queued up to invest in the new South Africa when
Mandela took power in 1994. GDP growth peaked at around 5% in 2005; fourteen
years on the country’s battered economy, plagued by power cuts, is struggling
to make one per cent.



“It’s no longer 1994!” exclaimed one business editor at the road to Davos
breakfast when asked about the country’s current new investment prospects in
Switzerland , “South Africa is just another small country in a big and more
complicated world.”



Fair enough. There are those in business who feel that South Africa didn’t
cash in enough on those gilded days of the Mandela feel good factor and is now
paying the price in the current difficult world economic climate. Many of them
are probably right. &nbsp;&nbsp;

How Tito Mboweni tossed a fortune into the bin

South African finance minister Tito Mboweni has two major headaches to sort out before the budget in February- how to cut the ballooning civil service wage bill and how to banish “rats and thieves” in the cause of cutting government spending.



Mboweni, who heads to the World Economic Forum in Davos next week, says wastage and corruption were the biggest drains on the country’s fiscus.



READ: <a href="https://www.cnbcafrica.com/wef/2020/01/16/this-is-how-sa-will-sell-its-investment-case-at-wef-2020/">This is how SA will sell its investment case at WEF 2020</a>



“The problem with government contracts is that when there are the big ones
with lots of money – that is when the rats and thieves come out!” he told a
Davos breakfast in Rosebank, Johannesburg.



“The public sector wage bill is also a huge threat to the fiscus and we will
be trying to find a solution before the February budget.”



Mboweni has his work cut out. Along with the job of convincing the world,
next week, that South Africa can change its economy quicker he has to think
hard about the budget in February. He has pledged many times not to risk
fuelling inflation by printing money to bail out government coffers, the
prudent alternative is likely to take a lot of canny though.



Corruption is only likely to be quelled by convictions and stiff sentences.
The civil service wage bill may be an even more arduous task and more than one
previous finance minister have fought shy of cutting it; the unions are strong
in South Africa’s civil service and are likely to fight the minister
tooth-and-nail.



February’s budget could be very interesting indeed.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

SA’s Finance Minister: How rats and thieves are nibbling and pilfering SA’s pockets

South African Finance Minister Tito Mboweni heads to the World Economic
Forum in Davos, Switzerland, next week ready to tell world leaders that South
Africa does have electricity – despite what they may have read in the papers –
but also ready to admit that the country is lagging in its economic reform.



The outspoken finance minister will field questions in the Swiss ski resort
– where 30,000 delegates will gather next week &#8211; resort from everyone from
presidents to the heads of multinational companies about everything from reform
the economy of Zimbabwe. The South African mission is bent on networking with
international investors and journalists asked Mboweni at a breakfast in
Rosebank, Johannesburg, Thursday about how difficult will this be for a country
struggling to maintain its electricity supply.



“When we are asked why there is no electricity in South Africa our answer is
going to be that this is not true. Yes, we are experiencing load shedding while
Eskom fixes this… You cannot be a doom day sayer and say there is not
electricity in South Africa. It is not true and that is the approach we will
take,” says Mboweni.



“We don’t want to go and lie to people if you lie to people you get caught.”



The finance minister also said the unbundling of the national power
generator Eskom into generation, transmission, distribution entities was moving
forward and be financed from the state budget and not the printing of money.



Yet Mboweni was scathing about failing state owned enterprises in general.



“We will tell in Davos of the determined effort to put state owned
enterprises on a good path, those which do work, those that don’t work should
get out of the way.” 



The finance minister also admitted that the structural reforms of South
Africa, promised with the advent of President Cyril Ramaphosa two years ago,
are behind and he expects questions about this in Davos.



“They will ask about the Reserve Bank and I will tell them the Reserve Bank
will stay independent and serve the needs of the people without fear nor
favour. We will also tell them that it is honest to say the pace of structural
reforms is not the way we want it to be so we must speed up,” says Mboweni.



Economic development minister Ebrahim Patel said South Africa could report
back to Davos on progress on a number of promises made in Switzerland last
year. He said the business portal – a one stop shop for entrepreneurs – had
made setting up and registering a business in South Africa much quicker.
&nbsp;&nbsp;

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