This is a word that I have always wanted to use as the headline of this column. It is a word that, as I type, is glowing in red; not even the spell checker recognises it. It simply means relating to the day before yesterday.

Two days before I wrote this piece, on January 27, the International Monetary Fund (IMF) and our National Treasury issued media statements on the IMF’s virtual staff visit to South Africa, which included the IMF’s statements that convey the visit’s preliminary findings. Based on these statements, the IMF staff will prepare a report that, if approved, will be presented to the IMF’s Executive Board for discussion.

The IMF’s media release deals with three issues. Firstly, it says Covid-19 has exacerbated South Africa’s growth and fiscal vulnerabilities, explaining that alleviating the impact of the pandemic’s resurgence is government’s top priority. Secondly, it states that addressing large fiscal deficits and debt will require containing the wage bill and avoiding ill-targeted subsidies and transfers to inefficient State-owned enterprises (SOEs). Thirdly, the IMF says that, to reignite growth and job creation, there is a need for reforms that address Eskom’s and other SOEs’ woes, strengthen competition and governance, and increase labour-market flexibility.

At this point you might well pause and contemplate the chorus of U2’s Sunday Bloody Sunday: “How long, how long must we sing this song? How long? How long?” It is a case of same old, same old. There is simply nothing new. “The pandemic has further exposed vulnerabilities of the South African economy.” It adds: “Tackling long-standing fiscal and structural challenges is more critical than ever to set the stage for a robust recovery and pursue strong, durable and inclusive growth . . . As per our previous advice, creating conditions to boost private investment, redefining the role of the public sector in network industries to facilitate competition, and tightening fiscal policy to rein in rapidly increasing debt are imperative.”

Reading the media release was reminiscent of my time as an international economics lecturer, when term papers had the habit of making a reappearance. I fear that the IMF might well have reached the point where it would not even require a virtual visit to write its future staff media statements.

The IMF resorts to some serious wishful thinking: “While phasing out Covid-19 outlays once the pandemic subsides, we encourage government to make transfers to SOEs conditional on meeting ambitious but realistic performance targets; rationalise compensation; dismantle ill-targeted subsidies; and improve enforcement of tax compliance. This would reduce sovereign borrowing needs, while preserving fiscal space for well-targeted outlays for infrastructure, health, education and social protection.” The IMF also includes a paragraph dealing with, among others, removing constraints to growth and job creation, attracting investment, promoting a business-friendly and competitive environment and accelerating governance reforms.

The IMF then returns to SOEs: “Special attention should be given to improving the efficiency of SOEs and the quality of their services by hardening their budget constraints and undertaking well-defined strategic equity partnerships, particularly in the energy sector. Recurring power outages in the midst of a deep recession underscore the need for bold action to redefine Eskom’s business model so that it becomes self-sustaining. In the absence of fundamental reforms, Eskom’s problems will continue to weigh on public finances and constrain economic growth prospects.”

The National Treasury listed in its statement the ‘actions that government is taking’: “Government continues to prioritise the response to the pandemic. South Africa remains committed to reduce its fiscal deficit and to stabilise debt over the next five years and return the public finances to a sustainable position. South Africa remains committed to implementing structural reforms.” It reiterates government’s commitment to the Economic Reconstruction and Recovery Plan and reminds that the February 2021 Budget Speech will provide further details on government’s plan to support inclusive economic growth.