As we welcome a new year, the way forward cannot be clearer in economic terms, writes Mazwi Xaba.
‘When the economy grows fast it delivers jobs. Workers earn wages and businesses make profits. The tax base expands and allows government to increase the social wage and provide education, health, social grants, housing and free basic services faster and in a more sustainable way
“Our reality now is that global growth still remains muted because our economy is relatively small and open, it is affected by all of these developments.”
With these words, President Jacob Zuma demonstrated in Parliament in February he and his lieutenants have a good grasp of the economic challenges our country faces.
He mentioned our state-owned enterprises, some of which are in a mess, and need to be properly managed and mandated to benefit our economy, the policy uncertainty affecting the mining sector and laws that make it harder to convince foreign investors South Africa is open for business.
We are likely to hear similar sermons in coming weeks. In the last State of the Nation address, Zuma’s peroration was old gospel many South Africans have long accepted: “We cannot change global economic conditions, but we can do a lot to change local conditions.
“Let us work together to turn the situation around. It can be done.”
As we welcome a new year, the way forward cannot be clearer in economic terms. We need to double our efforts to turn around our dire economic situation.
There has been progress, including improved electricity generation and promising talks of a national minimum wage and social compact aimed at stabilising the labour sector. But much more still needs to be done.
We have good plans and visions, including the National Development Plan. What we now need is implementation.
This new year brings with it fundamental changes. US President-elect Donald Trump will soon be installed as the leader of the world’s biggest economy and military superpower. We will soon find out what that will mean to our economy and the world order.
At home, the ANC will choose a leader to succeed Zuma later in the year, and credit rating agencies will be back to assess our investment grade.
A new era is about to dawn. But our blueprint for growth and constitutional tenets remain - as do our challenges to ease poverty, promote peace and healing, create jobs and reduce inequality.
Whatever storms come must find us working hard - it's all hands on deck.
* Mazwi Xaba is the Sunday Tribune editor.
Sunday Tribune