No cause for panic

[Danone]( [Mail & Guardian Newsletter logo](#) [mg.co.za]( [The Ampersand Daily Newsletter from the M&G team](#) [Divider Strip] October 15 2020 | [View in browser]( [Divider Strip] [Facebook icon]( [Twitter icon]( [Instagram icon]( [LinkedIn icon]( Hi there, This morning parliament formally consented to postpone the medium term budget policy statement. Due to take place next week, Finance Minister Tito Mboweni had asked for it to be pushed back to 28 October given the "complex and unusual circumstances" -- the Covid-19 pandemic -- the country finds itself in. Burdened with an economic outlook that has long looked bleak, it's easy to assume the postponement means more bad news. But there's no reason to panic, the economists say. Tshegofatso Mathe spoke to Isaac Matshegho, an economist at Nedbank, who said speeches are delayed for different reasons and there would be a concern if the [postponement was for a longer period](. Isaah Mhlanga, the chief economist at Alexandra Forbes, said that perhaps there might have been details that needed to be finalised ahead of the announcement of the South African Economic Reconstruction and Recovery plan. President Cyril Ramaphosa will today present the recovery plan to parliament. Building infrastructure, localisation of production and re-industrialisation will be used to stimulate economic activity, according to the plan, which the Mail & Guardian has seen. While we're on government and business, we recommend you read Sheree Bega's breakdown of [why motorists are paying for Sasol's pollution](. Yes, government's subsidies are set up in such a way that anyone who fills up at the pumps is contributing to the finances of one of the world's biggest polluters. "Because of the way fuels are priced in South Africa, consumers are forced to prop up Sasol every time they fill up their tank," Richard Bridle, a senior policy adviser at the International Institute for Sustainable Development. "It doesn't matter if you take a taxi, a bus, or drive your car, for every R100 that you spend on synfuel, R5 goes to Sasol. Synfuels make up around 30% of all gasoline sold in South Africa." Which brings us to another question: [what is the state's role in business]( State participation is valid when the market can't deliver what's needed, such as roads and rail networks and telecommunications, argues Khaya Sithole. But jumping into private enterprise concerns like airlines often represent ill-conceived courses of action. The M&G has you covered for all news and analysis of the economic recovery plan and mid-term budget. If you haven't already, please consider subscribing. Yours in solidarity, Kiri Rupiah and Luke Feltham [Divider Strip] [UJ]( [Divider Strip] [MG public servants]( [Divider Strip] [Facebook icon]( [Twitter icon]( [Instagram icon]( [LinkedIn icon]( You are receiving this email on {EMAIL} because 1.) You're a member of "Mail & Guardian" or 2.) previously subscribed [M&G logo] 25 Owl St, Braamfontein Werf, Johannesburg, 2092 Want to be removed? No problem! [UNSUBSCRIBE]( Email support: help@media-connect.co.za - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -