The ANC’s MEC held a four-day session from September 27-30, after which party secretary-general Ace Magashule addressed the media at Luthuli House.
The focus was on the country’s economy as the MEC discussed the economic recovery document by Finance Minister Tito Mboweni during his session.
“South Africa needs to reverse its economic performance as the growth and investment rate is too low. There are serious restrictions on the ability of the economy to respond to massive unemployment, entrenched and rising inequalities, ongoing poverty and the slow recovery of our industrial capabilities. ”
The MEC has discussed and agreed on a series of economic policy interventions to achieve a higher rate of economic growth and economic inclusion. This includes increasing competition and lowering costs and entry barriers for small businesses and prioritizing growth in labor-intensive sectors, such as agriculture, tourism, textiles, and mining.
According to Magashule, another priority is the restructuring of Eskom and the management of the power supplier’s financial position. “The poor financial position of Eskom, SAA, Denel, and state-owned companies must be addressed.”
Magashule announced that the private sector would be allowed to invest in state-owned companies. “In the wake of weak growth, there is a renewed appreciation by the MEC for the role of the private and labor sectors as important partners for growth.”
The MEC also emphasized the importance of investing in current and long-term infrastructure needs, including investments in economic infrastructure (such as roads, bridges, dams, electricity and water supply), social infrastructure (such as schools, hospitals, parks, and administrative services) and economic services.
“In general, the ANC comes out of this MEC meeting with a clear determination to act decisively and resolutely. The ANC will meet with its allies and other social partners will also be consulted to draw up an overarching social component for the implementation of an economic recovery and transformation plan. “
Mboweni’s much-discussed plan for economic growth and transformation has already drawn criticism from the ranks of Cosatu, the EFF and the populist grouping of the ANC. Mboweni’s ideas rely heavily on the market economy.