Zuma team will have to hard-sell SA Inc at Davos

22 January 2015 - 02:20 By The Times Editorial
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Pressing global issues such as the growing reach of Islamist terror, faltering economic growth, rising inequality and the plummeting oil price are taking centre stage in Davos this week where 2500 political and business leaders are meeting for the World Economic Forum.

The South African delegation, led by President Jacob Zuma, will use its stay in the picturesque town in the Swiss Alps to try to convince international movers and shakers that SA Inc is truly open for business.

They will point to the National Development Plan, our growth blueprint to 2030, to show that the economic framework is sound and that investors will be handsomely rewarded if they put their faith - and their money - into the ''gateway to Africa'' with its world-class financial services sector.

After all, the NDP envisages the private sector playing a crucial role in achieving inclusive growth of 5% a year - a prerequisite for stability and prosperity, with significantly reduced unemployment, poverty and inequality.

Trouble is, last year the economy, hammered by labour unrest, policy uncertainty and power constraints, grew by less than 2% and the outlook for this year is little better. At the same time several other countries on the continent - bolstered by far more pragmatic, investor-friendly policies and less hamstrung by ideological divisions - enjoyed rapid growth.

Sound as the NDP is as a framework for growth, it is bitterly opposed by powerful sections of the ANC-led alliance, and there is little evidence of it being implemented.

The less said about Eskom's power woes the better, but at least Zuma can boast that he has given Deputy President Cyril Ramaphosa the job of helping to turn around the power utility, along with other ailing parastatals.

The sinking oil price should bring some relief to our balance of payments, and Finance Minister Nhlanhla Nene's commitment to cutting soaring government expenditure is welcome.

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