Tito Mboweni branded the CEO of South Africa by Mazars Senior Partner

Global accounting and consulting firm Mazars organised a panel discussion in Cape Town in anticipation of the first budget speech to be delivered by South Africa’s new Finance Minister Tito Mboweni, an event where a Senior Tax Partner at the firm described Mboweni as the CEO of South Africa. 

Much is riding on Tito Mboweni’s upcoming budget speech. Most are wondering about changes in the revenue policy amid a sea of varying predictions. Tax rates were increased last year to mitigate the decline in government revenues, and several measures have been taken since then to prevent defaults.

Some expect further hikes in both tax rates and interest rates in the budget, while others anticipate changes in other dimensions of the tax policy such as an increase in taxes on expats. Nevertheless, Mboweni must balance these considerations with the goals of President Ramaphosa to substantially boost levels of foreign investment.

Mazars believes that Mboweni is more than capable of finding this balance, touting him as the stable figure that South Africa has been in need of for several years. “We have had significant instability in that position for years. There was a long period of instability from 2008 to 2014,” said Bernard Sacks, Senior Tax Partner at Mazars.

Mboweni was only appointed as Finance Minister late last year, only two weeks prior to the mini budget that was due in October, rendering him unable to implement any significant changes at the time. Mazars is more hopeful about his capabilities for this budget now that he has had time to assess the economic scenario.

“I am hopeful that Mboweni will steady the ship. He had a good stint at the Reserve Bank and impressed the international community there. I believe he can introduce measures to stimulate growth because there is limited opportunity to increase taxes,” said Sacks, labeling him the CEO of South Africa.

“He viewed his position as a short term stop gap. A three-year period would be sufficient for him to steady the ship, cement his policy, get South Africa on the path to growth and during that time groom the next minister of finance for one of, if not the most important position in Cabinet,” added Sacks, despite the fact that Mboweni has expressed his contempt for “recycling leadership.”