Data provided by iNet BFA
Loading...
See More

Zille's plan to boost SA growth

Jul 27 2012 14:38 Fin24

Related Articles

Proposed labour laws will cost jobs

Almost half of 1m jobs lost recovered

Vavi: Zille using the unemployed

SA must fight inequality - World Bank

DA: Gordhan's growth target too low

DA launches million jobs campaign

 
Cape Town - In an opinion piece for the Financial Times on Friday, DA leader Helen Zille points to the World Bank's revision of its growth forecast for the country from 3.1% to 2.5% as underlining "a theme of recent years that has seen South Africa's economy fail to keep pace with many of its developing peers".  

It is against this backdrop, said Zille, that she is presenting a new plan to "revive the economy and tackle the bottlenecks that frustrate so many would-be investors".

Zille points out that income equality has surpassed even apartheid-era statistics. "The truth," said Zille, "is that our economy is faltering."

"It is clear South Africa needs a radical change in direction," said Zille. The DA this weekend aims to launch a strategy that would accelerate annual growth to 8%.

"In particular, it proposes tough reforms to labour laws by removing the automatic extension of collective bargaining agreements across sectors; establishing 'jobs zones' featuring special exemptions from restrictive regulations; and lifting administrative requirements for small businesses.

"These changes will reduce barriers to entry, encourage flexibility and stimulate productivity in South Africa's principal labour-absorbing sectors such as mining, manufacturing and agriculture.

"Combined with focused employment incentives such as a youth wage subsidy and market-driven skills development programmes, the plan provides a radical overhaul of the country's labour market."

Zille contrast's the DA's vision with the ANC's "muddled blend of Venezuela-style resource nationalism and state-driven development", citing Vladimir Putin's Russia as a "textbook case" of "the concentration of wealth in the hands of the few".

"Our plan paves the way for a very different future: promoting innovation, entrepreneurship, investment and growth," said Zille.

The DA plans to address obsolete structural legacies inherited from the country's apartheid past with policies to "bring to life 'dead capital' through broad-based economic empowerment programmes, land reform and a proactive social security system".

Said Zille: "Examples of this include policies to distribute shares in state-owned companies; introduce tax deductions to incentivise employee shared-ownership schemes; promote a joint ownership model in the agricultural sector; and lower the cost barriers facing first-time homeowners."

This would place SA on a par with "the most competitive emerging economies in the world, from Turkey to Indonesia".

SA may garner praise for its sophisticated financial sector and sound legal environment, but falls short in ease of doing business and the barriers caused by excessive regulation and state inefficiency.

The DA's proposals "will cut the tax and regulatory burdens inhibiting new business growth", said Zille.

"Seven of the 10 fastest-growing economies in the world are in Africa.

"By setting out how to expedite regional trade by simplifying import, export and customs procedures and promoting regional government partnerships, we seek to position South Africa at the forefront of continental growth," said Zille.

* Follow Fin24 on Facebook, Twitter and Google+.



helen zille  |  growth  |  da  |  zille  |  jobs
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
37 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...