Moneyweb
New Finance Minister Enoch Godongwana says topping his “to-do list” to bolster SA’s economic growth includes reforming the country’s electricity supply, addressing spectrum issues and improving logistics infrastructure and capacity at ports.
He reiterated the government’s commitment towards addressing major structural economic issues, effectively backing his predecessor Tito Mboweni’s Operation Vulindlela reform plan, in a speech on Thursday at the Sunday Times National Investment Dialogue virtual event.
Godongwana struck a pragmatic tone, saying that an inclusive economy led by local investors is central to the country’s economic recovery plan.
He added that this is key to addressing the high unemployment, poverty and inequality challenges the country faces.
"The [reform] plan envisages new investments in energy, water and sanitation, roads and bridges, human settlements, health and education, digital infrastructure, and public transport," he said.
"We need investment, particularly domestic investment," Godongwana stressed.
The minister acknowledged that the country has increasingly become unattractive to investors, citing never-ending red tape as the common deterrent. He said there needs to be a move to remove the regulatory burden that comes with investing in the country for an increase in the appetite for investment.
Godongwana said the country’s economic recovery should prioritise attracting local investors and making the investment environment conducive for them before looking to global investors.
"People in South Africa want to go about their business and invest and we must allow them to invest and then we can tell others they must come and invest in South Africa," he added.
Another key sentiment expressed at the event was that an accelerated vaccination programme will remain a key driver of economic growth and that South Africa’s programme is just not moving at the desired pace.
Seven months into its vaccination programme, only 14.5% of the country’s adults are fully vaccinated. This is significantly lower than fellow Brics (Brazil, Russia, India, China, SA) members Brazil and India.
Brazil has reportedly fully vaccinated 42.2% of its adult population, while in India the figure stands at more than 17%.
"The truth remains that vaccines are the single most important weapon we’ve got right now to combat the virus and to return to some form of normality," said Dr Stavros Nicolaou, senior executive at Aspen Pharmacare.
"We have strong technical capabilities in this country that can be harnessed to solve not only local and continental but also global problems," he said.
