SA can't afford not to implement Mboweni's economic plan, warns deputy minister

[Jopie Fourie]

Government has to implement National Treasury's economic blueprint for the country, despite opposition to it, if South Africa is to attract domestic and foreign investment, boost export performance and be globally competitive, deputy finance minister David Masondo has said.

Masondo was addressing JP Morgan's South Africa Opportunities Conference on Monday morning at the Vineyard Hotel in Cape Town. Finance Minister Tito Mboweni released the economic strategy document for South Africa in August.

Treasury previously said that if the proposals contained in the paper Economic Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa are implemented, annual economic growth could be raised by up to three percentage points and one million jobs created.

However, the policy document faced resistance from some quarters, with the governing African National Congress’ labour federation ally, the Congress of South African Trade Unions, among its most vocal critics.

Speaking on Monday, Masondo emphasised the need to act quickly.

"This is the time for implementation! The extent to which I will talk about plans and strategies today, would simply to contextualise and remind ourselves on what we should implement in order to create sustainable and inclusive growth in South Africa," said Masondo.

SA can't afford not to implement Mboweni's economic plan, warns deputy minister | Business

Government has to implement National Treasury's economic blueprint if SA is to attract domestic and foreign investment, deputy finance minister David Masondo has said.

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[Jopie Fourie]

Treasury previously said that if the proposals contained in the paper Economic Transformation, Inclusive Growth and Competitiveness: Towards an Economic Strategy for South Africa are implemented, annual economic growth could be raised by up to three percentage points and one million jobs created.

I think the ANC's best option for now is to continue the way they are going and simply forget about saving and growing the economy. Rather let it collapse. Economic Transformation and Inclusive Growth are not going to happen in South Africa. Rather focus on getting black people to first start small businesses and then try to build an economy over the next 500 years on that.

If I have to invest in South Africa or start a big business and this means 30%, 40% or even 51% must be handed to a black person for transformation or inclusive growth reasons, I would much rather focus on opening my business in the US or UK or alternatively, rather invest my money there, as this does not make any business or financial sense. If I start my own small business and grows in into a large company, I want to keep my business for myself and not hand shares out to people based on colour of skin or employ people based on colour of skin due to stupid laws like AA, BEE, etc.

With all these laws, rules and regulations in place, South Africa is closed to serious businesses and not a good investment opportunity.

If we cannot have a level playing field in terms of business, then there is no need to look at SA in starting or growing one.