Why is Lindiwe Zulu so defiant in her proposal for a National Social Security Fund? Why now, so shortly after the July uprising in KwaZulu-Natal and Gauteng? Why did Treasury and the Presidency not hasten to throw cold water on this burning log? Why, why, why… ?
Zulu’s Department of Social Development opened a can of worms last week when it gazetted the new Green Paper on Comprehensive Social Security and Retirement Reform, without the agreement of the rest of the Cabinet, and disregarding years of negotiations and research from key stakeholders.
In a nutshell the Green Paper’s key proposal is a new National Social Security Fund (NSSF) – a government-managed fund in which all South Africans will have to pay up to 12% of their earnings. In return, you will get a small pension, disability benefits, a flat-rate funeral benefit and income protection benefits, including an unemployment benefit.
This has not only caused an outcry and paved the way for a possible tax revolt, but is probably doing what it was set out to do – drive a wedge in an already divided government and amplifying calls for President Cyril Ramaphosa’s head – full circle back to the July insurrection.
This mini mess could just turn out to be the biggest test of Ramaphosa’s rule and his ability to keep control over his Cabinet.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
SA in need of rapid economic growth to eradicate unemployment: Wits Business School – SABC News
Franchisee accuses online retail giant Takealot of corporate bullying – Daily Maverick
Buying corpses and faking accidents – fraudsters scammed over R500m out of insurers in 2020 – Fin24
Global Business
Retail survivors: The London shops that have been trading for centuries – BBC
Bankers issue ‘seismic’ warning: Bitcoin, Ethereum, BNB, Cardano and XRP could replace the dollar in just five years as crypto market price adds $1 trillion – Forbes
El Salvador readies Bitcoin rollout with 200 ATMs for conversion – Bloomberg
Markets
Renewed recovery optimism provides further boost to stocks, crude – AFP
China tech stocks rebound on buying from Cathie Wood and Tencent – Bloomberg
‘The markets are holding up, but only just’ – David Shapiro talks shares after his first Tesla ride – Biznews
Opinion
ANC KwaZulu-Natal: A party so divided, it faces political paralysis before the polls – Daily Maverick
Durban’s toxic warehouse: Ramaphosa urged to act on Cornubia chemical disaster – Daily Maverick
How does Bitcoin mining work? – European Business Review
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