Deregulate SA's power and transport sectors: SARB governor Lesetja Kganyago | Business

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SARB governor Lesetja Kganyago's proposed changes to policies include structural reforms, deregulation of the nation’s transport and electricity sectors, lowering the inflation target and a shift back to predictable, transparent fiscal policy rules.

Governor Lesetja Kganyago called on government to implement reforms to macroeconomic policies to boost economic growth. The ANC has agreed to change the central bank’s mandate to include job creation, a prospect that rattled investors worried that modifications would weaken the institution's independence.South African Reserve Bank Governor Lesetja Kganyago called for sweeping reforms to macroeconomic policies to boost economic growth, and lessen exchange rate volatility and sovereign risk.

"With the rise in debt created by our efforts to confront weakening growth and failures of state enterprises, there is little chance of improving credit quality without new rules and more strategic use of macroeconomic policy," Kganyago said in a speech at the Peterson Institute for International Economics in Washington Tuesday.

Public finances in Africa’s most industrialized economy were hard hit by a decade of graft, known locally as state capture. A full house of junk credit ratings and rising government debt following a RMeanwhile severe power rationing because of Eskom’s inability to meet demand and logistics-network constraints are eroding the nation’s economic-growth prospects, disrupting local supply chains and stoking inflation.

 

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Zimbabwe was once there, neoliberal economics hurt the poor

Deregulation of transportation = electric cars Deregulation of electricity sector = renewable energy

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