SA’s economy will not transform itself so we must do it‚ says Gigaba

Finance minister Malusi Gigaba has provided a definition of the current government catchphrase of “radical economic transformation”‚ saying it is a way to hand the economy over to the country’s majority.

“Radical economic transformation basically means the same thing as inclusive growth‚” said Gigaba at the World Economic Forum summit in Durban on Wednesday. “It’s about growing the economy in order to achieve transformation.”

Gigaba‚ who controversially replaced Pravin Gordhan in the crucial finance portfolio hotseat in a heavily criticised late-night cabinet reshuffle by President Jacob Zuma‚ said the country’s economy was not going to transform itself in order to meet the demands of the historically marginalised majority.

“There is no point in growing the economy and hope that it’s going to transform itself. There is a genuine social grievance among South Africans that most South Africans have no asset base [and] that their only role in the economy is seeking employment and joining the economy as employees. And many of them face no chance of being employed‚” he said on the sidelines of the three-day event.

Zuma led a delegation of 17 ministers and deputy ministers – headlined by Gigaba – to the forum‚ a move that economists said was a tour de force to show investors that there was unity in his seemingly fractured government.

Gigaba addressed international investors’ concerns over recent junk status downgrades‚ saying that the “risks” in South Africa did not mean there was a need to panic. He said there were similar risks and concerns in Britain after the Brexit vote‚ in the US after the election of Donald Trump and in France ahead of a presidential vote – and that all of these created uncertainty over countries’ stances on international trade.

“The political processes that are taking place in our country should really not scare the investors away. They need to know the government remains solid. We’ve got strong institutions‚ we’ve got strong legal and constitutional frameworks‚ and we’ve got very strong financial institutions‚ and their investments will continue to be protected. Government will meet its obligations as far as their investments are concerned‚” he said.

TMG Digital/TimesLIVE