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.
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BizNews Reporter ___STEADY_PAYWALL___
BizNews founder Alec Hogg sat down with outspoken businessman and investor Rob Hersov to discuss South Africa’s 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.
A budget in disarray
The interview kicked off with a startling revelation: South Africa’s budget was cancelled, an unprecedented move in the country’s history. For Hogg, who has covered national budgets since his early days as a reporter, this was beyond incompetence—it was sheer chaos.
Hersov, never one to mince words, acknowledged Finance Minister Enoch Godongwana’s competence but argued that he is shackled by the ANC’s ideological stranglehold. “There’s no true leadership in the ANC,” he declared. “Cyril [Ramaphosa] is spineless and useless. He has never made a decision in his life.”
A corporate rescue plan for South Africa
Hersov believes South Africa’s economy mirrors a failing corporation. “If you have a company that’s collapsing—too much debt, bloated costs, no profits—what do you do? You bring in a turnaround specialist,” he explained.
In business, this involves drastic cost-cutting, debt renegotiation, and firing ineffective management. “The 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.”
Applying this model to South Africa, Hersov called for slashing the public sector. “Fire 200,000 civil servants. Cut the ministries from 32 to 16. Privatize loss-making state-owned enterprises.”
The VAT and tax exodus
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. “We already have an exodus of taxpayers. Raising VAT will push even more people to avoid taxes or leave entirely.”
Hogg pointed out the well-known economic principle of the Laffer Curve—raising taxes beyond a certain point reduces revenue, as people find ways to dodge them. “There’s a whole group of people in KZN who don’t pay VAT. This is spreading.”
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ANC’s declining popularity and the 2027 election
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’s MK party. “If the ANC teams up with MK, this country is done,” he stated bluntly.
He also took aim at Ramaphosa’s leadership, citing recent polling that suggests he is now a liability rather than an asset. “Cyril is dragging the ANC down. But be careful what you wish for—the alternative could be worse. Paul Mashatile is waiting in the wings, and he’s dangerous.”
The “woke mind virus” and South Africa’s economic future
Expanding beyond politics, Hersov linked South Africa’s decline to global trends in governance and ideology. “Worldwide, we’re seeing a backlash against woke ideology, leftist economic policies, and net-zero madness. But South Africa isn’t catching up. The ANC is still pushing outdated socialist nonsense.”
He took a swipe at Old Mutual for forecasting a “rosy five years ahead” for South Africa. “No wonder they’re saying this—Trevor 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.”
A new funding strategy: From charity to political change
One of Hersov’s most controversial arguments is that wealthy South Africans should stop donating to charity and instead fund political change.
“Charity 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—organizations that are fighting the root cause.”
Read more: Irina Filatova: How Trump’s Putin bromance has shattered ANC’s worldview. Brilliant analysis.
He specifically called out philanthropists and corporations: “Discovery is filling potholes in Johannesburg. But who created those potholes? The ANC. Fixing them only enables further incompetence.”
Hogg acknowledged the vested interests in the charity sector, noting that a large chunk of donations never even reach their intended recipients. “In the corporate world, I saw up to 20% of donations going to ‘facilitators’—middlemen taking a cut.”
Cape independence: Pipe dream or necessary shift?
As a Cape resident, Hersov was asked about Cape independence. While acknowledging its appeal, he believes a more realistic solution is radical federalization—shifting power away from Pretoria to local governments. “The DA, AfriForum, and Solidarity have been calling for this. We need to state-proof provinces against ANC misrule.”
The way forward: A call to action
Hersov ended with a stark warning: “South Africa is on the brink. If we don’t shift gears now, we are headed for economic collapse.” His prescription is clear: cut costs, shrink government, privatize failing SOEs, and fund opposition parties rather than ineffective charities.
Alec Hogg closed with a challenge: “So, in essence, what you’re 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.”
Hersov’s response? “Absolutely.”
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