{"id":833273,"date":"2025-03-11T12:12:39","date_gmt":"2025-03-11T17:12:39","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/03\/11\/rob-hersov-budget-debacle-more-proof-sa-needs-business-type-turnaround-urgently\/"},"modified":"2025-03-11T12:12:39","modified_gmt":"2025-03-11T17:12:39","slug":"rob-hersov-budget-debacle-more-proof-sa-needs-business-type-turnaround-urgently","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/03\/11\/rob-hersov-budget-debacle-more-proof-sa-needs-business-type-turnaround-urgently\/","title":{"rendered":"Rob Hersov \u2013 Budget debacle more proof SA needs business-type turnaround. Urgently."},"content":{"rendered":"<div itemprop=\"text\">\n<p><em>In the Tuesday Show, capitalist activist Rob Hersov uses his experience at the tip of global business to outline a way that will save South Africa from its continued drift into penury. He also explains why there is a far better way to help SA than well-intentioned donations to charity. Hersov spoke to BizNews editor Alec Hogg.<\/em><\/p>\n<p><em>Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register\u00a0<\/em><strong><em><a href=\"https:\/\/bit.ly\/3lfVRYP\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/em><\/strong><em>.<\/em><\/p>\n<p><em>If you prefer\u00a0<\/em><strong><em>WhatsApp<\/em><\/strong><em>\u00a0for updates, sign up to the BizNews channel\u00a0<\/em><strong><em><a href=\"https:\/\/whatsapp.com\/channel\/0029Vb0ohuHLY6d7SuoacT2d\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/em><\/strong>.<\/p>\n<hr>\n<p><strong><em>Watch here<\/em><\/strong><\/p>\n<figure>\n<p>\n<iframe loading=\"lazy\" title=\"Rob Hersov - Budget debacle more proof SA needs business-type turnaround. Urgently.\" width=\"875\" height=\"492\" src=\"https:\/\/www.youtube.com\/embed\/6lnO25PapW8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<\/figure>\n<p><strong><em>Listen here<\/em><\/strong><\/p>\n<hr>\n<p><strong>BizNews Reporter<\/strong> ___STEADY_PAYWALL___<\/p>\n<p>BizNews founder Alec Hogg sat down with outspoken businessman and investor Rob Hersov to discuss South Africa\u2019s dire economic and political state. Against the backdrop of the recent ARC conference in London, where global economic shifts were highlighted, Hersov delivered a blistering critique of the ANC-led government, calling for an urgent turnaround strategy akin to corporate rescue operations.<\/p>\n<h3 id=\"h-a-budget-in-disarray\"><strong>A budget in disarray<\/strong><\/h3>\n<p>The interview kicked off with a startling revelation: South Africa\u2019s budget was cancelled, an unprecedented move in the country\u2019s history. For Hogg, who has covered national budgets since his early days as a reporter, this was beyond incompetence\u2014it was sheer chaos.<\/p>\n<p>Hersov, never one to mince words, acknowledged Finance Minister Enoch Godongwana\u2019s competence but argued that he is shackled by the ANC\u2019s ideological stranglehold. \u201cThere\u2019s no true leadership in the ANC,\u201d he declared. \u201cCyril [Ramaphosa] is spineless and useless. He has never made a decision in his life.\u201d<\/p>\n<h3 id=\"h-a-corporate-rescue-plan-for-south-africa\"><strong>A corporate rescue plan for South Africa<\/strong><\/h3>\n<p>Hersov believes South Africa\u2019s economy mirrors a failing corporation. \u201cIf you have a company that\u2019s collapsing\u2014too much debt, bloated costs, no profits\u2014what do you do? You bring in a turnaround specialist,\u201d he explained.<\/p>\n<p>In business, this involves drastic cost-cutting, debt renegotiation, and firing ineffective management. \u201cThe first thing a turnaround specialist does is fire most of the management, get rid of excess employees, and sell off non-performing divisions. This happens immediately.\u201d<\/p>\n<p>Applying this model to South Africa, Hersov called for slashing the public sector. \u201cFire 200,000 civil servants. Cut the ministries from 32 to 16. Privatize loss-making state-owned enterprises.\u201d<\/p>\n<h3 id=\"h-the-vat-and-tax-exodus\"><strong>The VAT and tax exodus<\/strong><\/h3>\n<p>Instead of cost-cutting, the government is proposing tax hikes, including a possible VAT increase. Hersov warned that this would drive more taxpayers out of the country. \u201cWe already have an exodus of taxpayers. Raising VAT will push even more people to avoid taxes or leave entirely.\u201d<\/p>\n<p>Hogg pointed out the well-known economic principle of the Laffer Curve\u2014raising taxes beyond a certain point reduces revenue, as people find ways to dodge them. \u201cThere\u2019s a whole group of people in KZN who don\u2019t pay VAT. This is spreading.\u201d<\/p>\n<blockquote>\n<p><strong><em>Read more<\/em><\/strong>: <a href=\"https:\/\/www.biznews.com\/interviews\/2025\/02\/24\/bn-briefing-250224\">BN Briefing: ANC support plummets in latest SRF poll; Mulder elected FF+ leader; German elections<\/a><\/p>\n<\/blockquote>\n<h3 id=\"h-anc-s-declining-popularity-and-the-2027-election\"><strong>ANC\u2019s declining popularity and the 2027 election<\/strong><\/h3>\n<p>With the ANC polling at just 32%, Hersov believes the party is crumbling. However, he warns that desperation might drive it into alliances with radical groups like Jacob Zuma\u2019s MK party. \u201cIf the ANC teams up with MK, this country is done,\u201d he stated bluntly.<\/p>\n<p>He also took aim at Ramaphosa\u2019s leadership, citing recent polling that suggests he is now a liability rather than an asset. \u201cCyril is dragging the ANC down. But be careful what you wish for\u2014the alternative could be worse. Paul Mashatile is waiting in the wings, and he\u2019s dangerous.\u201d<\/p>\n<h3 id=\"h-the-woke-mind-virus-and-south-africa-s-economic-future\"><strong>The \u201cwoke mind virus\u201d and South Africa\u2019s economic future<\/strong><\/h3>\n<p>Expanding beyond politics, Hersov linked South Africa\u2019s decline to global trends in governance and ideology. \u201cWorldwide, we\u2019re seeing a backlash against woke ideology, leftist economic policies, and net-zero madness. But South Africa isn\u2019t catching up. The ANC is still pushing outdated socialist nonsense.\u201d<\/p>\n<p>He took a swipe at Old Mutual for forecasting a \u201crosy five years ahead\u201d for South Africa. \u201cNo wonder they\u2019re saying this\u2014Trevor Manuel, an ANC acolyte, is their chairman. The reality is, if these race-based laws and socialist policies continue, we will have zero foreign investment, even at 50 rand to the dollar.\u201d<\/p>\n<h3 id=\"h-a-new-funding-strategy-from-charity-to-political-change\"><strong>A new funding strategy: From charity to political change<\/strong><\/h3>\n<p>One of Hersov\u2019s most controversial arguments is that wealthy South Africans should stop donating to charity and instead fund political change.<\/p>\n<p>\u201cCharity only patches up problems created by the ANC. Instead of giving millions to NGOs, donate to the DA, Patriotic Alliance, Freedom Front Plus, IRR, and the Free Market Foundation\u2014organizations that are fighting the root cause.\u201d<\/p>\n<blockquote>\n<p><strong><em>Read more<\/em><\/strong>: <a href=\"https:\/\/www.biznews.com\/thought-leaders\/2025\/02\/24\/irina-filatova-trumps-putin-bromance-anc\">Irina Filatova: How Trump\u2019s Putin bromance has shattered ANC\u2019s worldview. Brilliant analysis.<\/a><\/p>\n<\/blockquote>\n<p>He specifically called out philanthropists and corporations: \u201cDiscovery is filling potholes in Johannesburg. But who created those potholes? The ANC. Fixing them only enables further incompetence.\u201d<\/p>\n<p>Hogg acknowledged the vested interests in the charity sector, noting that a large chunk of donations never even reach their intended recipients. \u201cIn the corporate world, I saw up to 20% of donations going to \u2018facilitators\u2019\u2014middlemen taking a cut.\u201d<\/p>\n<h3 id=\"h-cape-independence-pipe-dream-or-necessary-shift\"><strong>Cape independence: Pipe dream or necessary shift?<\/strong><\/h3>\n<p>As a Cape resident, Hersov was asked about Cape independence. While acknowledging its appeal, he believes a more realistic solution is radical federalization\u2014shifting power away from Pretoria to local governments. \u201cThe DA, AfriForum, and Solidarity have been calling for this. We need to state-proof provinces against ANC misrule.\u201d<\/p>\n<h3 id=\"h-the-way-forward-a-call-to-action\"><strong>The way forward: A call to action<\/strong><\/h3>\n<p>Hersov ended with a stark warning: \u201cSouth Africa is on the brink. If we don\u2019t shift gears now, we are headed for economic collapse.\u201d His prescription is clear: cut costs, shrink government, privatize failing SOEs, and fund opposition parties rather than ineffective charities.<\/p>\n<p>Alec Hogg closed with a challenge: \u201cSo, in essence, what you\u2019re saying is that if people truly want change, they should stop funding band-aid solutions and start funding the political forces that can drive real reform.\u201d<\/p>\n<p>Hersov\u2019s response? \u201cAbsolutely.\u201d<\/p>\n<p><strong><em>Read also<\/em>:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.biznews.com\/interviews\/2025\/02\/24\/ff-leader-gnu-anc-fair-defect\">New FF+ Leader bides time on GNU, demands ANC starts playing fair or it will defect<\/a><\/li>\n<li><a href=\"https:\/\/www.biznews.com\/interviews\/2025\/02\/24\/poll-shows-anc-down-32\">SA\u2019s most accurate poll shows ANC down to 32% \u2013 its populist gamble has backfired<\/a><\/li>\n<li><a href=\"https:\/\/www.biznews.com\/sa-investing\/2025\/02\/24\/mthembu-sas-problem-beyond-aid\">Zakhele Mthembu: SA\u2019s problem goes far beyond aid from the rich North<\/a><\/li>\n<\/ul><\/div>\n<p> Alec Hogg<br \/><a href=\"https:\/\/www.biznews.com\/interviews\/2025\/02\/25\/rob-hersov-budget-debacle-sa-turnaround\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the Tuesday Show, capitalist activist Rob Hersov uses his experience at the tip of global business to outline a way that will save South Africa from its continued drift into penury. He also explains why there is a far better way to help SA than well-intentioned donations to charity. Hersov spoke to BizNews editor<\/p>\n","protected":false},"author":1,"featured_media":833274,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23273,142388],"tags":[6328,142387],"class_list":{"0":"post-833273","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-budget","8":"category-hersov","9":"tag-budget","10":"tag-hersov"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/833273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=833273"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/833273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/833274"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=833273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=833273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=833273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}