Because of high unemployment and poverty levels, all South African municipalities have been tasked to promote local economic development (LED) as part of their integrated development plans (IDPs). Various central and provincial government departments, organizations such as SALGA as well as consultants provide LED guidance and support to the municipalities. And academics do research on LED and small towns in South Africa and publish their results in scientific journals. Yet, given the above, there is an aspect that really puzzles us.
Category: ECONOMIC POLICY AND STRATEGY
With Moody’s soon to announce their assessment of SA’s credit risk, Finance Minister Malusi Gigaba made it clear that a white minority was controlling the economy through a monopoly and that was now to change. Gigaba, speaking mostly in isiZulu, said “The economy is controlled by a minority; they are a monopoly. There are a lot of companies owned by very few people and the services and products on offer enrich these few people.” (Gigaba: It is time to put us first ).
Addressing an ANC Youth League event in Pinetown, Gigaba remarked that there was an agreement in 1993 that white people would continue to have a say in the economy. The ANC stayed committed to this, “but now has come a time for change. It is time to put us first.” Continue reading “If monopolies are the problem, start dismantling the worst: the State-owned Enterprises”
One would expect Malusi Gigaba as new Minister of Finance to consider avoidance of further down-grades by rating agencies as his top priority. Policy confusion and instability coupled with growth unfriendly strategies already caused the Fitch and the Standard & Poor downgrades. However, Gigaba’s comments yesterday indicated that he is more concerned about growing black owned enterprises than about growing the economy or receiving value for public money. Continue reading “With Gordhan out of the way Gigaba seems keen to embark on an anti-growth and anti-poor strategy”
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