Pretoria - Two reports from Finance Minister Pravin Gordhan and Trade and Industry Minister Rob Davies are set to define the debate on the economy set to take place at the ANC NEC lekgotla in Pretoria over the next two days.
With the rand recently reaching record lows, the economy struggling to yield sufficient growth and with job creation almost stagnant, the ANC is desperate to raise investor confidence and find new money to boost state spending.
Fresh from deliberations at the World Economic Forum in Davos, Gordhan is expected to table a report that will inform the ANC’s posture towards the economy as it prepares for President Jacob Zuma’s State of the Nation Address next month and a challenging election year.
Upon his return to the finance ministry last year, Gordhan emphasised how state spending would only increase if revenues were increased, and that spending would be cut if necessary to finance the country’s debt.
Gordhan’s report is also expected to touch on how the state intends to deal with under-performing state-owned enterprises, which have become a pain to the Treasury as some require ongoing bailouts.
Speaking on the sidelines of the lekgotla in Pretoria on Monday, ANC secretary-general Gwede Mantashe said the fact that they were receiving two reports on the economy showed how seriously the matter would be debated.
But Mantashe downplayed the nature of the challenges facing the country’s economy, saying all developing countries were in difficult economic situations.
Mantashe said global economic factors were also contributing to the country’s situation, while the economic challenges of the likes of China and the EU were also a factor as they were South Africa’s biggest trading partners.
“All developing countries are on a tightrope and South Africa is no exception.
“But we are going to debate the economy and the approach to the economy, that is why we are receiving two reports.
“The first one is an input from the Treasury, which will be looking into the fiscal aspects of governance.
“And we will receive another report from (Minister) Rob Davies into the international economic situation, including trade relations,” said Mantashe.
He added that they would also receive a report on the state of local government and research conducted by the party, which is likely to influence how they approach the elections.
The ANC is already facing challenges in some areas where contesting for positions of councillors has resulted in violence.
But according to Mantashe, this is to be expected with all local government elections.
“Selection of candidates is always a tense process, it is not something new that we are beginning to see. Actually, it is not as intense as in the last elections, (but) we are paying attention to those areas. The reality is that selection of candidates for council is always a life and death issue.”
Pretoria News