Nene welcomes end to strike as fiscus suffers

The five-month platinum mine strike had had a “significant” effect on government revenue, Finance Minister Nhlanhla Nene said yesterday. “The actual impact on the fiscus itself has not been quantified but… this translated into a contraction in our economy in the first quarter,” he said. “The ending of the strike in the platinum sector should have a positive impact on sentiment and ultimately economic growth. The news of a settlement is most welcome.” Nene said recent demotions by rating agencies were not unexpected. Global and domestic economic risks would make it harder to implement the 20-year National Development Plan, which targets average annual economic growth of 5.4 percent to cut the jobless rate to 14 percent by 2020 from 25.2 percent. The risks “will require that trade-offs be made in light of limited fiscal resources, the demands of shareholders, and those who help us fund our national ambitions”, Nene said. – Bloomberg