On Wednesday, 3rd of May 2017, South Africa’s Minister of Finance, Malusi Gigaba, gave an assurance that the government will maintain fiscal prudence while it pursues the structural transformation of the economy. This was made known during an interview at the ongoing World Economic Forum on Africa.
In a one-on-one interview at the World Economic Forum today, Gigaba said that the targets for the 2017 budget have already been approved and the challenge is now ensuring they are met. “We cannot spend money we don’t have,” he said, adding that the independence of the Treasury is safe.
The minister said that the focus would be on delivering and implementing programmes that have already been agreed. Key among these is the acceleration of the black industrialists’ programme and development of black-owned businesses through the government’s R500 billion procurement budget and infrastructure programme.
Gigaba admitted that he has been critical of the ANC’s black economic empowerment programme to date, saying it had focused more on share ownership schemes than building genuine entrepreneurs. It is key, he said, to ensure that black South Africans own assets in order to make them part of the mainstream economy and head off growing frustration with economic marginalisation.
Gigaba said the ANC could be considered to have been too conservative in restructuring the post-Apartheid economy and what is needed is to change the “ownership patterns” of the economy. There are limited opportunities in South Africa’s rural areas and, within the former township areas of the cities, people are generally occupied in menial economic activities such as car wash businesses and hair salons.
Asked about corruption, the minister said it is a “major concern in our country and a major concern in government.” There is a real commitment to tackling the problem, he said but cautioned against linking transformation and corruption.
Gigaba said the government will continue to work hard to attract investments by addressing investor concerns and increase the confidence of local investors.
The minister said the next generation of leaders need to be well-educated and skilled given the different roles they need to play in government. He also suggested that young people, who make up a large part of Africa’s total population, need to become brokers in Africa’s political structures. “They will have a different take on political issues from our predecessors,” the minister explained.
